Question
Q2 Consider a bond with a $1,000 par value, 8% annual coupon, 10 years to maturity, with an interest rate of 6%. The price of
Q2
Consider a bond with a $1,000 par value, 8% annual coupon, 10 years to maturity, with an interest rate of 6%. The price of the bond is $1,148. What is the duration of this bond?
a. 4.62 years
b. 6.78 years
c. 7.45 years
d. 9.93 years
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
