Which of the following four bonds has the least Macaulay duration? A bond with A. 4.75% yield and 40-year maturity. B. 5.25% yield and 30-year maturity. C. 6.75% yield and 20-year maturity. D. 7.25% yield and 10-year maturity.

Which of the following four bonds has the least Macaulay duration? A bond with A. 4.75% yield and 40-year maturity. B. 5.25% yield and 30-year maturity. C. 6.75% yield and 20-year maturity. D. 7.25% yield and 10-year maturity.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 8FPE: Describe and differentiate between a bonds (a) current yield and (b) yield to maturity. Why are...

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Question

Which of the following four bonds has the least Macaulay duration? A bond with

4.75% yield and 40-year maturity.

5.25% yield and 30-year maturity.

6.75% yield and 20-year maturity.

7.25% yield and 10-year maturity.

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