Question
The current price of an annual coupon bond is 100. The yield to maturity is an annual effective rate of 8%. The derivative of the
The current price of an annual coupon bond is 100. The yield to maturity is an annual effective rate of 8%. The derivative of the price of the bond with respect to the yield to maturity is -700. Using the bond's yield rate, calculate the Macaulay duration of the bond in years.
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The Macaulay duration of a bond is a measure of its weighted average time to receive cash flows wher...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
