Find the duration of a bond with a settlement date of May 27, 2025, and maturity date November 15, 2036. The coupon rate of the bond is 8.0%, and the bond pays coupons semiannually. The bond is selling at a bond- equivalent yield to maturity of 8.0%. Use: Spreadsheet 16.3 Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Macaulay duration Modified 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
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Using Excel functions to compute duration
A
Inputs
Settlement date
Maturity date
Coupon rate
Yield to maturity
1
2
3
4
5
6
Coupons per year
7
Outputs
8 Macaulay duration
Modified duration
9
B
1/1/2000
1/1/2002
0.08
0.10
2
1.8852
1.7955
C
Formula in column B
= DATE (2000,1,1)
= DATE (2002,1,1)
0.08
0.10
2
= DURATION (B2, B3, B4, B5, B6)
= MDURATION (B2, B3, B4, B5, B6)
Transcribed Image Text:Using Excel functions to compute duration A Inputs Settlement date Maturity date Coupon rate Yield to maturity 1 2 3 4 5 6 Coupons per year 7 Outputs 8 Macaulay duration Modified duration 9 B 1/1/2000 1/1/2002 0.08 0.10 2 1.8852 1.7955 C Formula in column B = DATE (2000,1,1) = DATE (2002,1,1) 0.08 0.10 2 = DURATION (B2, B3, B4, B5, B6) = MDURATION (B2, B3, B4, B5, B6)
Find the duration of a bond with a settlement date of May 27, 2025, and
maturity date November 15, 2036. The coupon rate of the bond is 8.0%,
and the bond pays coupons semiannually. The bond is selling at a bond-
equivalent yield to maturity of 8.0%. Use Spreadsheet 16.3
Note: Do not round intermediate calculations. Round your answers to
2 decimal places.
Macaulay duration
Modified duration
Transcribed Image Text:Find the duration of a bond with a settlement date of May 27, 2025, and maturity date November 15, 2036. The coupon rate of the bond is 8.0%, and the bond pays coupons semiannually. The bond is selling at a bond- equivalent yield to maturity of 8.0%. Use Spreadsheet 16.3 Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Macaulay duration Modified duration
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