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
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Question
Transcribed Image Text:Yesterday you bought a three-year, $1,000 bond with a 6 % coupon (paid annually) and a 5% yield to maturity. Today, the yield on similar risk
bonds rose to 6%.
What was the duration of the bond on the acquisition date?
Multiple Choice
O
2.85
2.88
2.84
2.82
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