Macaulay duration 11.8100 Modified duration 11.2500

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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60) Why did I get this wrong?

A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate
is 5.70 percent, and the bond has a yield to maturity of 5.01 percent. What are the Macaulay
duration and modified duration? (Use the duration functions in Excel to solve the problem. Do
not round intermediate calculations. Round your answers to 4 decimal places.)
Answer is complete but not entirely correct.
Macaulay duration
11.8100
Modified duration
11.2500
Transcribed Image Text:A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.70 percent, and the bond has a yield to maturity of 5.01 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Answer is complete but not entirely correct. Macaulay duration 11.8100 Modified duration 11.2500
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