Five years ago, Weisu bought an 8-year, 7% semi-annual coupon bond. Face Value= 1000. If the yield

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Five years ago, Weisu bought an 8-year, 7% semi-annual coupon bond. Face Value= 1000. If the yield to maturity (compounded semi-annually) is 5.5%, what is the bonds duration today? What does this duration tell us?

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 04, 2024 03:38 AM

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Five years ago, Weisu bought an 8-year, 7% semi-annual coupon bond. Face Value= 1000. If the yield

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First we need to calculate the current price of the bond The bond has a face value of 1000 and pays ... View the full answer

Corporate Finance

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