Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a bond has payments of $100 in one year, $100 the

A bond has payments of $100 in one year, $100 the following year, and then $1,100...

90.2K

Verified Solution

Question

Finance

A bond has payments of $100 in one year, $100 the followingyear, and then $1,100 the year after that. If the discount rate is6%, what is the Macaulay Duration of this set of payments?

Answer & Explanation Solved by verified expert
4.1 Ratings (752 Votes)
K NBond Price Coupon1 YTMk Par value1 YTMNk1K 3Bond Price 1010001001 6100k 10001    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A bond has payments of $100 in one year, $100 the followingyear, and then $1,100 the year after that. If the discount rate is6%, what is the Macaulay Duration of this set of payments?

Other questions asked by students

Q

The September 30, 2018 balance sheet of ABC Corporationdisclosed the following information relating to...

Accounting
Q

You are manager of an airline company. The company issues stock options to its employees that...

Finance
Q

TedTalk "The future of money" What are some emerging developments/trends in money and banking?

Finance
Q

Does the board of directors need shareholder approval to decide operating policies?

General Management
Q

Applying What You ve Learned 1 Cystic Fibrosis is a genetic condition that affects the...

Biology
Q

Bobarinolaskinateiskbobo Bushovskiyacvouwxyz (Fred for short), the purchasing manager for a construction company in some country...

Accounting
Q

Carpeting Company provides the following partial list of assets: Cash $5,000; A/R: $30,000; Inventory: $25,000;...

Accounting
Q

MY Autobodys adjusted trial balance on December 31, 2023, appears in the work sheet as...

Accounting
Q

Briefly explain the difference(s) between descriptive and predictive analytics.

Accounting
Q

Wendells Donut Shoppe is investigating the purchase of a new $18,600 donut-making machine. The new...

Accounting
Q

Saved hares: Retired & Treasury Shares i National Supply's shareholders' equity included the following accounts...

Finance
Q

1) Explain the difference between systematic and unsystematic risk? Which portfolio has the least unsystematic...

Finance