A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 12 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 9.128 years 8.648X years
A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 12 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 9.128 years 8.648X 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
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![A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 12 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.
X Answer is complete but not entirely correct.
Macaulay
Modified
Duration
9.128 X years
8.648 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70a8482f-c24a-43c7-8ccd-4cb76bc2d495%2Fbce90faa-9f85-4b23-8228-93d1cb230b81%2F4bbnu0m_processed.png&w=3840&q=75)
Transcribed Image Text:A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 12 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.
X Answer is complete but not entirely correct.
Macaulay
Modified
Duration
9.128 X years
8.648 years
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