You have a 6% coupon bond in Rio Grande Wall Corporation, an infrastructure corporation in the US.

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You have a 6% coupon bond in Rio Grande Wall Corporation, an infrastructure corporation in the US. The bond has 4 years to maturity and is priced to yield 5% both interest rates are semi annual. a. Calculate the duration of a $1000 face value bond?

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Corporate Finance Core Principles and Applications

ISBN: 978-1259289903

5th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Posted Date: May 08, 2024 09:18 AM

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You have a 6% coupon bond in Rio Grande Wall Corporation, an infrastructure corporation in the US.

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Expert Answer:

To calculate the duration of a bond you can use a simplified formula Duration Yield 1 1 Yield Where ... View the full answer

Corporate Finance Core Principles and Applications

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