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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Question
Mansukh
Transcribed Image Text:You have discovered that when the required rate of return on a bond you own fell by 0.5 percent from 8.6 percent to 8.1 percent,
the fair present value rose from $970 to $990. The bond pays interest annually. What is the duration of this bond? Assume annual
payments. (Do not round intermediate calculations. Round your answer to 1 decimal place. (e.g., 32.1))
Duration of this bond
years
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