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M&E Investments Co is considering investing into a 7% K1,000 corporate redeemable at a 5% premium in 6 years' time. The market interest rates are

M&E Investments Co is considering investing into a 7% K1,000 corporate redeemable at a 5% premium in 6 years' time. The market interest rates are expected to fluctuate over six (6) as follows:

Year 1 2 3 4 5 6

Market Interest rate (%) 6 5 6 7 8 8

Required:

Calculate the bond duration

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