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In the fixed income market, there are two types of bonds: Bond A: Newly issued coupon bond Fixed coupon rate of 5 . 0 %
In the fixed income market, there are two types of bonds:
Bond A:
Newly issued coupon bond
Fixed coupon rate of
Nominal value of Euros
Maturity period of years from today
Redeemed in the form of annuity payments, with the first payment one year from now
Current market price: Euros
Bond B:
Perpetual bond
Next coupon payment of Euros to be made in one year
Coupon payments will decrease by each year
What is the duration of Bond
NB Please provide your answer with two decimal places. Eg if the answer is then please type
Answer:
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