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Youareconsideringaninvestmentintwodifferentbonds.Onebondmaturesin sixyearsandhasafacevalueof$1,000.Thebondpaysanannualcouponof 8.5%andhasa 7%yieldtomaturity.Theotherbondisa 5-yearzerocouponbondwithafacevalueof$1,000andalsohasayieldtomaturityof 7%. What is the duration. SHOW WORK or FORMULA.

  1. Youareconsideringaninvestmentintwodifferentbonds.Onebondmaturesin sixyearsandhasafacevalueof$1,000.Thebondpaysanannualcouponof 8.5%andhasa 7%yieldtomaturity.Theotherbondisa 5-yearzerocouponbondwithafacevalueof$1,000andalsohasayieldtomaturityof 7%. What is the duration. SHOW WORK or FORMULA.

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