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Consider a bond with the following features and a hypothetical settlement date of 10 October 2019. Annual Coupon 5% Coupon Payment Frequency Semiannual Interest

Consider a bond with the following features and a hypothetical settlement date of 10 October 2019. Annual Coupon 5% Coupon Payment Frequency Semiannual Interest Payment Dates 30 December and 30 June Maturity Date 30 December 2020 Day-Count Convention 30/360 Annual Yield-to-Maturity 6% Use the formula to solve for Macaulay Duration for the bond described above. Make sure that you annualize your answer. Round your answer to three decimal places. Remember, answers without the corresponding work uploaded will receive zero points.

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Answer To calculate the Macaulay Duration for the bond well use the formula Macaulay Duration sumt1n PVtt1 YTMt ight where PVt Present value of cash f... blur-text-image

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