53. Sam buys an eight-year, 5000 par bond with an annual coupon rate of 5%, paid annually. The bond sells for 5000. Let d₂ be the Macaulay duration just before the first coupon is paid. Let d₂ be the Macaulay duration just after the first coupon is paid. d₁ Calculate d₂ (A) 0.91 (B) 0.93 (C) 0.95 (D) 0.97 (E) 1.00
53. Sam buys an eight-year, 5000 par bond with an annual coupon rate of 5%, paid annually. The bond sells for 5000. Let d₂ be the Macaulay duration just before the first coupon is paid. Let d₂ be the Macaulay duration just after the first coupon is paid. d₁ Calculate d₂ (A) 0.91 (B) 0.93 (C) 0.95 (D) 0.97 (E) 1.00
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Help please its easy i know for you so please help
Transcribed Image Text:53. Sam buys an eight-year, 5000 par bond with an annual coupon rate of 5%, paid annually. The bond sells
for 5000. Let d₁ be the Macaulay duration just before the first coupon is paid. Let d₂ be the Macaulay
duration just after the first coupon is paid.
Calculate 1
dz
(A) 0.91
(B) 0.93
(C) 0.95
(D) 0.97
(E) 1.00
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