An investor buys a 6% annual payment bond with three years to maturity. The bond has a
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An investor buys a 6% annual payment bond with three years to maturity. The bond has a yield-to-maturity of 8% and is currently priced at 94.845806 per 100 of par. The bond’s Macaulay duration is closest to:
A. 2.62.
B. 2.78.
C. 2.83.
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The Macaulay duration of a bond is a measure of the bonds price sensitivity to changes in inter...View the full answer
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