Question
The duration is 2.64 years for a bond with an 5% coupon rate, maturing in three years. A discount rate of 8% should be applied.
The duration is 2.64 years for a bond with an 5% coupon rate, maturing in three years. A discount rate of 8% should be applied. ASSUME ANNUAL CASH FLOWS for this problem.
- A. True
- B. False
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Contemporary Financial Management
Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan
7th Edition
0538877766, 9780538877763
