A bond with a coupon rate of 11 percent sells at a yield to maturity of 12 percent. If the bond matures in 10 years, what is the Macaulay duration? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Macaulay duration years
A bond with a coupon rate of 11 percent sells at a yield to maturity of 12 percent. If the bond matures in 10 years, what is the Macaulay duration? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Macaulay duration years
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter29: Interest, Rent, And Profit
Section: Chapter Questions
Problem 1WNG
Related questions
Question

Transcribed Image Text:A bond with a coupon rate of 11 percent sells at a yield to maturity of 12 percent. If the bond matures in 10 years, what is the Macaulay
duration?
Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Macaulay duration
years
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning


Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning


Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning