You bought a $100 par value, 7% annual coupon bond that matures in three year and has a yield-to-maturity of 8%. What is the Macauley duration of this bond? 1.95 years 2.60 years 2.81 years 3.00 years
You bought a $100 par value, 7% annual coupon bond that matures in three year and has a yield-to-maturity of 8%. What is the Macauley duration of this bond? 1.95 years 2.60 years 2.81 years 3.00 years
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
Related questions
Question
![You bought a $100 par value, 7%
annual coupon bond that matures in
three year and has a yield-to-maturity
of 8%. What is the Macauley duration
of this bond? 1.95 years 2.60 years 2.81
years 3.00 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c443f7e-b002-4cc0-a672-6c134df795e0%2Ff51ba52f-f583-4c03-aa57-e11b7d0d5b74%2Fruelh31_processed.png&w=3840&q=75)
Transcribed Image Text:You bought a $100 par value, 7%
annual coupon bond that matures in
three year and has a yield-to-maturity
of 8%. What is the Macauley duration
of this bond? 1.95 years 2.60 years 2.81
years 3.00 years
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