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Renegade Sports have issued 5 year bonds to raise capital for expansion into new markets. The bonds pay couponsannuallyat an effective annual rate of7% pa.
Renegade Sports have issued 5 year bonds to raise capital for expansion into new markets. The bonds pay couponsannuallyat an effective annual rate of7% pa. The face amount of the bonds is $195,000 and they have an effective annual yield of4% pa. Calculate the duration (D) of the Renegade bonds. Give your answer in years to 2 decimal places.
D = ? years
[5marks]
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