What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annua selling at par with a yield to maturity (YTM) of 12%? Please show all the calculatic calculating the duration of this bond. Five-year Treasury Bond: Par value = $1,000; Coupon rate = 10%; Annual payments; VTM - 129%
What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annua selling at par with a yield to maturity (YTM) of 12%? Please show all the calculatic calculating the duration of this bond. Five-year Treasury Bond: Par value = $1,000; Coupon rate = 10%; Annual payments; VTM - 129%
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 17P: Bond Value as Maturity Approaches An investor has two bonds in his portfolio. Each bond matures in 4...
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