Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9780077861759
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 25, Problem 12QP
Summary Introduction

To calculate: Duration of the bond.

Duration:

It is an object used in bond valuation to determine the sensitivity of the bond. High duration comes with high probability of interest rate risk while in lower duration there is low risk of interest rate fluctuation.

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