Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 16, Problem 19PS
Summary Introduction

To calculate: The duration of a bond with a settlement date of May 27,2020 and maturity date November 15, 2031.

Introduction:

Modified duration: It states how changes in interest rate affects the bond’s durations. The syntax used in Excel is

   =MDuration(Settlement date, maturity date, coupon rate, yield to maturity, frequency, basis) as optional.

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