Q14. Consider a security with a face value of $100,000 to be repaid at maturity. The maturity of the security is 3 years. The coupon rate is 8% per annum and coupon payments are made annually. The current market rate is 8% p.a. What is the security’s duration (round your answer to two decimals)? a. 1.44 years b. 3 half-years. c. 1.39 years. d. 1.39 half-years e. 2.78 years.
Q14. Consider a security with a face value of $100,000 to be repaid at maturity. The maturity of the security is 3 years. The coupon rate is 8% per annum and coupon payments are made annually. The current market rate is 8% p.a. What is the security’s duration (round your answer to two decimals)? a. 1.44 years b. 3 half-years. c. 1.39 years. d. 1.39 half-years e. 2.78 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
Problem 1PS
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Q14. Consider a security with a face value of $100,000 to be repaid at maturity. The maturity of the security is 3 years. The coupon rate is 8% per annum and coupon payments are made annually. The current market rate is 8% p.a. What is the security’s duration (round your answer to two decimals)?
a. 1.44 years
b. 3 half-years.
c. 1.39 years.
d. 1.39 half-years
e. 2.78 years.
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