Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Southpac bank holds a 1 1 - year zero - coupon bond with face value $ 1 0 0 , 0 0 0 . The

Southpac bank holds a 11-year zero-coupon bond with face value $100,000. The market interest rate is 7%. What is the dollar duration of this bond?
a.11
b.1028037.38
c.1100000
d.488413.16
e. None of the options.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance

Authors: Wolfgang Breuer, Claudia Nadler

2012th Edition

3834934496, 978-3834934499

More Books

Students explore these related Finance questions