Find the duration of a 5.0% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 5.0%. What is the duration if the yield to maturity is 8.0%? Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. 5% YTM 8% YTM Duration 2.86 2.85 years years
Find the duration of a 5.0% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 5.0%. What is the duration if the yield to maturity is 8.0%? Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. 5% YTM 8% YTM Duration 2.86 2.85 years 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
Section: Chapter Questions
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Vijay
![Find the duration of a 5.0% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to
maturity of 5.0%. What is the duration if the yield to maturity is 8.0%?
Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answers to 2 decimal places.
Answer is complete but not entirely correct.
5% YTM
8% YTM
Duration
2.86 x years
2.85
years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c481243-b52d-40f8-b56c-e166fbc00ae1%2F48479eef-f602-4bc2-9212-d3b49f6ed496%2F977be2s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Find the duration of a 5.0% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to
maturity of 5.0%. What is the duration if the yield to maturity is 8.0%?
Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answers to 2 decimal places.
Answer is complete but not entirely correct.
5% YTM
8% YTM
Duration
2.86 x years
2.85
years
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