Consider a three-year corporate bond selling for $1,052.49, paying interest annually, with a face value of $1,000,

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Consider a three-year corporate bond selling for $1,052.49, paying interest annually, with a face value of $1,000, a coupon rate of 9%, and a YTM of 7%. What is the duration of this bond?

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Essentials of Investments

ISBN: 978-0077835422

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Posted Date: Mar 26, 2024 01:40 AM

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Consider a three-year corporate bond selling for $1,052.49, paying interest annually, with a face value of $1,000,

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Expert Answer:

To calculate the duration of a bond we will use the formula for Macaulay duration Macaulay duration ... View the full answer

Essentials of Investments

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