A four-year maturity deep discount coupon corporate bond with a required rate of return (YTM) of 12 percent has a Macaulay duration of years. 3.05 2.97 3.22 3.71 4.00

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 5P: Default Risk Premium A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate...
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A four-year maturity deep discount coupon corporate bond with a required rate of return
(YTM) of 12 percent has a Macaulay duration of
years.
3.05
2.97
3.22
3.71
4.00
Transcribed Image Text:A four-year maturity deep discount coupon corporate bond with a required rate of return (YTM) of 12 percent has a Macaulay duration of years. 3.05 2.97 3.22 3.71 4.00
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