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  3. 2. may, 2005 #3 a bond will pay a coupon of 100 at

2. May, 2005 #3 A bond will pay a coupon of 100 at the end...

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Accounting

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2. May, 2005 #3 A bond will pay a coupon of 100 at the end of each of the next three years and will pay the face value of 1000 at the end of the three-year period. The bond's duration (Macaulay duration) when valued using an annual effective interest rate of 20% is X. Calculate X. (A) 2.61 (B) 2.70 (C) 2.77 (D) 2.89 (E) 3.00

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