A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Duration Macaulay 7.180 X years Modified 6.420 X years
A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Duration Macaulay 7.180 X years Modified 6.420 X years
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
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Transcribed Image Text:A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond
matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration?
(Do not round intermediate calculations. Round your answers to 3 decimal places.)
Answer is complete but not entirely correct.
Duration
Macaulay
7.180 X years
Modified
6.420 X years
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