Required: . Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 5.9%. (Do not round intermediate calculations. Round your answers to 4 decimal places.) . What is the duration if the yield to maturity is 10.9% ? (Do not round intermediate calculations. Round your answers to 4 decimal laces.) YTM a. 6.9% YTM b. 10.9% YTM Duration 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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Required:
a. Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of
6.9%. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
b. What is the duration if the yield to maturity is 10.9% ? (Do not round intermediate calculations. Round your answers to 4 decimal
places.)
YTM
a. 6.9% YTM
b. 10.9% YTM
Duration
Years
Years
Transcribed Image Text:Required: a. Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.9%. (Do not round intermediate calculations. Round your answers to 4 decimal places.) b. What is the duration if the yield to maturity is 10.9% ? (Do not round intermediate calculations. Round your answers to 4 decimal places.) YTM a. 6.9% YTM b. 10.9% YTM Duration Years Years
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