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Hi, I'm having some trouble on how to calculate the below question regarding duration of zero-coupon bonds... Wouldn't the duration be the same as the
Hi, I'm having some trouble on how to calculate the below question regarding duration of zero-coupon bonds... Wouldn't the duration be the same as the maturity time since there's no coupons? Please advise.
Calculate the duration of a zero-coupon bond with five years to maturity, face value of $1000, and effective annual yield of 12.1604%. Show your calculations. What does your answer say about the duration of zero-coupon bonds in general?
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