A certain bond has a 5-year maturity, pays a coupon rate of 7%, and sells for $1,064.80.

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A certain bond has a 5-year maturity, pays a coupon rate of 7%, and sells for $1,064.80. What is the bond's duration in years assuming that coupon payments are made semiannually? Report your answer to two decimal places.

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Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

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Posted Date: Apr 03, 2024 04:50 AM

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A certain bond has a 5-year maturity, pays a coupon rate of 7%, and sells for $1,064.80.

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To calculate the bonds duration we need to take into account the bonds cash flows coupon payments an... View the full answer

Contemporary Engineering Economics

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