Question
Calculate the requested measures in parts (a) and (b) for bonds A and B (assume that each bond pays interest semiannually): A. Macaulay Duration B.
Calculate the requested measures in parts (a) and (b) for bonds A and B (assume that each bond pays interest semiannually):
A. Macaulay Duration
B. Modified Duration
| A | B | |
| Coupon rate | 8% | 9% |
| Yield to maturity | 8% | 8% |
| Maturity (years) | 2 | 5 |
| Par | $100.00 | $100.00 |
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
ISBN: 978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
