You are given the following information about an annual coupon bond: i) The current price of the bond is 97 ii) The derivative of the price of the bond with respect to the yield to maturity is - 600 iii) The yield to maturity is an annual effective rate of 4%. Calculate the duration of the bond. Possible Answers A -6.43 B -6.19 € 5.95 D 6.19 E 6.43

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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You are given the following information about an annual coupon bond:
i) The current price of the bond is 97
ii) The derivative of the price of the bond with respect to the yield to maturity is - 600
iii) The yield to maturity is an annual effective rate of 4%.
Calculate the duration of the bond.
Possible Answers
A -6.43
B
-6.19
C 5.95
D 6.19
E
6.43
Transcribed Image Text:You are given the following information about an annual coupon bond: i) The current price of the bond is 97 ii) The derivative of the price of the bond with respect to the yield to maturity is - 600 iii) The yield to maturity is an annual effective rate of 4%. Calculate the duration of the bond. Possible Answers A -6.43 B -6.19 C 5.95 D 6.19 E 6.43
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