Question
Five years ago, Weisu bought an 8-year, 7% semi-annual coupon bond. Face Value= 1000. If the yield to maturity (compounded semi-annually) is 5.5%, what is
Five years ago, Weisu bought an 8-year, 7% semi-annual coupon bond. Face Value= 1000. If the yield to maturity (compounded semi-annually) is 5.5%, what is the bonds duration today? What does this duration tell us?
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First we need to calculate the current price of the bond The bond has a face value of 1000 and pays ...
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
