Answered: You find a bond with 28 years until…

You find a bond with 28 years until maturity that has a coupon rate of 7 percent and a yield to maturity of 9 percent. What is the Macaulay duration? The modified duration?

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 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...

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You find a bond with 28 years until maturity that has a coupon rate of 7 percent and a yield to maturity of 9 percent. What is the Macaulay duration? The modified duration?

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