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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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