Solve by Formula. Three years ago, ABC Company issued 10-year bonds that pay 5% semiannually.    a. If the bond currently sells for $1,045, what is the yield to maturity (YTM) on this bond?    b. If you are expecting that the interest rate will drop in the near future and you want to gain profit by speculating on a bond, will you buy or sell this bond? Why?

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Q: Duration of this bond years

A: We can determine the duration of the bond by rearranging the formula below:

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