bond with a coupon rate of 10 percent sells at a yield to maturi ercent. If the bond matures in 12 years, what is the Macaulay du the bond? What is the modified duration? (Do not round termediate calculations. Round your answers to 3 decimal pl

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 10 percent sells at a yield to maturity of 12
percent. If the bond matures in 12 years, what is the Macaulay duration
of the bond? What is the modified duration? (Do not round
intermediate calculations. Round your answers to 3 decimal places.)
Duration
Macaulay
years
Modified
years
Transcribed Image Text:A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Duration Macaulay years Modified years
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