Bond A Bond B Years to maturity 5 years 10 years Coupon rate 5% 5% Par value 1000 1000 Yield to maturity 8% 6% Par amount owned R3,45 million R2 million Market value R30 367.59 (in 000’s) R18 528 (in 000’s) How do you work out the duration using Macauly's duration.
Bond A Bond B Years to maturity 5 years 10 years Coupon rate 5% 5% Par value 1000 1000 Yield to maturity 8% 6% Par amount owned R3,45 million R2 million Market value R30 367.59 (in 000’s) R18 528 (in 000’s) How do you work out the duration using Macauly's duration.
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
Related questions
Question
|
|
Bond A |
Bond B |
|
Years to maturity |
5 years |
10 years |
|
Coupon rate |
5% |
5% |
|
Par value |
1000 |
1000 |
|
Yield to maturity |
8% |
6% |
|
Par amount owned |
R3,45 million |
R2 million |
|
Market value |
R30 367.59 (in 000’s) |
R18 528 (in 000’s) |
How do you work out the duration using Macauly's duration.
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