# Question: Compute the duration for the data in problem 1 Use

Compute the duration for the data in problem 1. Use an approach similar to that in Table 18–2 on page 469. A discount rate of 13 percent should be applied.

## Relevant Questions

As part of your answer to problem 2, you computed the price of the bond [column (4)]. This is the same as the PV of cash flows in column (4). a. Recompute the price of a bond based on a 11 percent discount rate (market rate ...A 30-year, $1,000 par value zero-coupon bond provides a yield of 11 percent. a. Compute the current price of the zero-coupon bond. (Hint: Simply take the present value of the ending $1,000 payment). b. What is the duration ...Explain how currency fluctuations affect the return on foreign investments. What are REITs? What are the three types of REITs? Why would an investor want to diversify a portfolio with alternative investments?Post your question