Find the duration of a three-year bond with face value equal to $100 that pays a coupon

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Find the duration of a three-year bond with face value equal to $100 that pays a coupon of $3 every year. The yield to maturity (y) of the bond equals 6%.

(a) when the bond's yield to maturity equals 10%.

(b) Discuss the difference between using intuition.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1260153590

12th edition

Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan

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Posted Date: Apr 15, 2023 04:11 AM

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Find the duration of a three-year bond with face value equal to $100 that pays a coupon

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Calculate the weighted average of the time until each cash flow is received The formula for duration ... View the full answer

Fundamentals of Corporate Finance

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