Find the duration of a bond with settlement date June 15, 2018, and maturity date December...

80.2K

Verified Solution

Question

Finance

Find the duration of a bond with settlement date June 15, 2018,and maturity date December 23, 2027. The coupon rate of the bond is9%, and the bond pays coupons semiannually. The bond is selling ata yield to maturity of 10%. (Do not round intermediatecalculations. Round your answers to 4 decimal places.)

Macaulay duration:
Modified duration:

Answer & Explanation Solved by verified expert
4.0 Ratings (620 Votes)
Macaulay Duration PV1 PV T1 PV2 PV T2 PVn PV TnWhere PV1 PV2 and PVn refer    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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Find the duration of a bond with settlement date June 15, 2018,and maturity date December 23, 2027. The coupon rate of the bond is9%, and the bond pays coupons semiannually. The bond is selling ata yield to maturity of 10%. (Do not round intermediatecalculations. Round your answers to 4 decimal places.)Macaulay duration:Modified duration:

Other questions asked by students