Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. find the duration of a 7.0% coupon bond making sem

Find the duration of a 7.0% coupon bond making semiannually coupon payments if it has three...

80.2K

Verified Solution

Question

Finance

Find the duration of a 7.0% coupon bond makingsemiannually coupon payments if it has three years untilmaturity and has a yield to maturity of 6.0%. What is the durationif the yield to maturity is 8.4%? Note: The face value of the bondis $100

Answer & Explanation Solved by verified expert
3.7 Ratings (423 Votes)
1 when YTM6TimeCashflowPVF3Present Value CashflowPVFWeight based on present    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

Find the duration of a 7.0% coupon bond makingsemiannually coupon payments if it has three years untilmaturity and has a yield to maturity of 6.0%. What is the durationif the yield to maturity is 8.4%? Note: The face value of the bondis $100

Other questions asked by students

Q

The state? lottery's million-dollar payout provides for ?$1 ?million(s) to be paid over 19 years in...

Finance
Q

You are discussing your 401(k) with Dan Ervin when he mentions that Sarah Brown, a representative...

Finance
Q

Which method (statistic) do you use for detecting the violation of the assumption for the repeated-measures...

Statistics
Q

In Jonathan Swift s A Modest Proposal we understand that he is sympathetic to critical...

Biology
Q

An object dropped from the top of the Leaning Tower of Pisa lands 17 feet...

Geometry
Q

TB ES Qu 12 126 Consider a two w Consider a two way analysis of...

Statistics
Q

Answer the following.(a) Find an angle between 0 and 360 that is coterminal with 810.(b)...

Calculus
Q

2 A plane flies 910 miles with the wind in the same time it can...

Algebra
Q

of how the conceptual framework guides the preparation and presentation of financial statements. Support your...

Accounting
Q

For each of the following accounts, indicate whether it normally possesses a debit or a...

Accounting
Q

How much money should Melissa invest today into a fund that earns interest at 3.50%...

Accounting
Q

Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The...

Finance