An-year annual coupons bond with coupon rate r per year. The yield rate is 0.10. Calculate the Macaulay duration of the bond for all four possible combinations of parameters: •n = 10 or 30 •r= 0.05 or 0.15

An-year annual coupons bond with coupon rate r per year. The yield rate is 0.10. Calculate the Macaulay duration of the bond for all four possible combinations of parameters: •n = 10 or 30 •r= 0.05 or 0.15

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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Question

A n-year annual coupons bond with coupon rate r per year. The yield
rate is 0.10. Calculate the Macaulay duration of the bond for all four possible combinations
of parameters:
• n = 10 or 30
• r = 0.05 or 0.15

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