The current price of an annual coupon bond is 100. The yield to maturity is an annual
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Question:
The current price of an annual coupon bond is 100. The yield to maturity is an annual effective rate of 8%. The derivative of the price of the bond with respect to the yield to maturity is -700. Using the bond's yield rate, calculate the Macaulay duration of the bond in years.
Expert Answer:
The Macaulay duration of a bond is a measure of its weighted average time to receive cash flows wher... View the full answer
Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
