Find the limiting value of Macaulay duration as maturity is increased to infinity of an 8% coupon bond that is trading at a yield of 8% and pays coupons every 6 months. Please round your numerical answer to the nearest integer.

Find the limiting value of Macaulay duration as maturity is increased to infinity of an 8% coupon bond that is trading at a yield of 8% and pays coupons every 6 months. Please round your numerical answer to the nearest integer.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.2IP

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