Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose we have a bond with a 3-year term to maturity, a 25% coupon paid annually, and a market yield of 20%. Calculate the duration

Suppose we have a bond with a 3-year term to maturity, a 25% coupon paid annually, and a market yield of 20%. Calculate the duration for this bond. (round your answer to 2 decimal places).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Macroeconomics

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

6th Canadian Edition

978-0321675606

Students also viewed these Finance questions