An organization purchased a four-year $10,000 bond paying a 7% annual coupon and interest rates (for present value purposes are currently at 4%. This works out to a present value of the payment streams of $673.08 + $647.19 + $622.30 + $9,146.40 = $11,088.97, which is the market price of the bond. What is the duration of this bond? 75 years 65 years 75 years 0 years

An organization purchased a four-year $10,000 bond paying a 7% annual coupon and interest rates (for present value purposes are currently at 4%. This works out to a present value of the payment streams of $673.08 + $647.19 + $622.30 + $9,146.40 = $11,088.97, which is the market price of the bond. What is the duration of this bond? 75 years 65 years 75 years 0 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 5P

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