A bond pays annual interest. Its coupon rate is 11.2%. Its value at maturity is...
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Accounting
A bond pays annual interest. Its coupon rate is 11.2%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 8.2%. The duration of this bond is _______ years.
a)3.20
b)4.00
c)2.95
d)3.46
A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases 21 basis points, the price of the bond will go down to $1,021. The duration of this bond is ____ years.
a)14.09
b)13.14
c)12.26
d)14.50
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