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Given an effective rate of interest of 3%, calculate the Macaulay duration of a portfolio that consists of the following 2 bonds: Bond A is
Given an effective rate of interest of 3%, calculate the Macaulay duration of a portfolio that consists of the following 2 bonds:
- Bond A is a 5-year bond with an annual coupon rate of 8% and maturing at its par value of 100.
- Bond B is a 10-year zero-coupon bond with a maturity value of 100
Possible Answers
A. 5.9
B. 6.1
C. 6.3
D. 6.5
E. 6.7
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
