Required: a. Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.5%. (Do not round intermediate calculations. Round your answers t 4 decimal places.) b. What is the duration if the yield to maturity is 10.5 % ? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Required: a. Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.5%. (Do not round intermediate calculations. Round your answers t 4 decimal places.) b. What is the duration if the yield to maturity is 10.5 % ? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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