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A bond with a coupon rate of 7 percent sells at a yield to maturity of...

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Finance

A bond with a coupon rate of 7 percent sells at a yield tomaturity of 8 percent. If the bond matures in 11 years, what is theMacaulay duration of the bond? What is the modified duration?

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4.2 Ratings (789 Votes)
AnswerLet us assume Par value of bond 1000Annual coupon 1000 7 70YTM    See Answer
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A bond with a coupon rate of 7 percent sells at a yield tomaturity of 8 percent. If the bond matures in 11 years, what is theMacaulay duration of the bond? What is the modified duration?

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