Homework Help is Here – Start Your Trial Now!
Business
Finance
What is the duration of a 4-year bond with an annual coupon rate of 9%? Its value at maturity is $1,000, the current bond price is $1,103.96, and the yield to maturity is 6%. The present values of cash flows from Year 1 through Year 4 are $84.91, $80.10, $75.57, and $863.38. 3.56 3.23 4.1 2.44

What is the duration of a 4-year bond with an annual coupon rate of 9%? Its value at maturity is $1,000, the current bond price is $1,103.96, and the yield to maturity is 6%. The present values of cash flows from Year 1 through Year 4 are $84.91, $80.10, $75.57, and $863.38. 3.56 3.23 4.1 2.44

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question
None
What is the duration of a 4-year bond with an annual coupon rate of 9%? Its value at maturity is $1,000, the current bond price is $1,103.96, and the yield to maturity is 6%. The present values of cash flows from Year 1 through Year 4 are $84.91, $80.10, $75.57, and $863.38. 3.56 3.23 4.1 2.44
Transcribed Image Text:What is the duration of a 4-year bond with an annual coupon rate of 9%? Its value at maturity is $1,000, the current bond price is $1,103.96, and the yield to maturity is 6%. The present values of cash flows from Year 1 through Year 4 are $84.91, $80.10, $75.57, and $863.38. 3.56 3.23 4.1 2.44
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS