Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have discovered that when the required rate of return on a bond you own fell by 0.5 percent from 9.5 percent to 9 percent,
You have discovered that when the required rate of return on a bond you own fell by 0.5 percent from 9.5 percent to 9 percent, the fair present value rose from $975 to $985. What is the duration of this bond? Assume annual payments. (Do not round intermediate calculations. Round your answer to 1 decimal place. (e.g., 32.1))
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started