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You are interested in purchasing a bond with three years to maturity and semiannual interest payments....

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Finance

You are interested in purchasing a bond with three years tomaturity and semiannual interest payments. The bond has a 7% couponrate and a 9% yield to maturity. The bond has a $1,000 par value.What is the bond’s duration in years?

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3.6 Ratings (622 Votes)
K Nx2Bond Price Coupon1 YTM2k Par value1 YTM2Nx2k1K 3x2Bond Price 710002001 9200k 10001    See Answer
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You are interested in purchasing a bond with three years tomaturity and semiannual interest payments. The bond has a 7% couponrate and a 9% yield to maturity. The bond has a $1,000 par value.What is the bond’s duration in years?

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