The par value of a bond is $1000 with a 6 % coupon paid annually. Time to maturity is 3 years and the YTM is 8%. Calculate the duration of the bond using Macaulay’s formula?
The par value of a bond is $1000 with a 6 % coupon paid annually. Time to maturity is 3 years and the YTM is 8%. Calculate the duration of the bond using Macaulay’s formula?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
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The par value of a bond is $1000 with a 6 % coupon paid annually. Time to maturity is 3 years and the YTM is 8%. Calculate the duration of the bond using Macaulay’s formula?
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