d.What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annual couponselling at par with a yield to maturity (YTM) of 12%? Please show all the calculations whilecalculating the duration of this bond.Five-year Treasury Bond: Par value = $1,000; Coupon rate = 10%; Annual payments;YTM = 12%

Duration of bond show sensitivity of bond prices to the changes in the interest rate of bond. That…

What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annua selling at par with a yield to maturity (YTM) of 12%? Please show all the calculatic calculating the duration of this bond. Five-year Treasury Bond: Par value = $1,000; Coupon rate = 10%; Annual payments; VTM - 129%

What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annua selling at par with a yield to maturity (YTM) of 12%? Please show all the calculatic calculating the duration of this bond. Five-year Treasury Bond: Par value = $1,000; Coupon rate = 10%; Annual payments; VTM - 129%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

d.
What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annual coupon
selling at par with a yield to maturity (YTM) of 12%? Please show all the calculations while
calculating the duration of this bond.
Five-year Treasury Bond: Par value = $1,000; Coupon rate = 10%; Annual payments;
YTM = 12%

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