A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 15 years, what is the Macaulay duration of the bond? What is the modified duration? Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Answer is complete but not entirely correct. Macaulay Modified Duration 8.293 years 7.471 years
A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 15 years, what is the Macaulay duration of the bond? What is the modified duration? Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Answer is complete but not entirely correct. Macaulay Modified Duration 8.293 years 7.471 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
Problem 1PS
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