On 23 January 1987, the market price of a West Jefferson Development Bond was $1,122.32. The bond
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On 23 January 1987, the market price of a West Jefferson Development Bond was $1,122.32. The bond pays $59 in interest on 1 March and 1 September of each of the years 1987–1993. On 1 September 1993, the bond is redeemed at its face value of $1,000. Calculate the yield to maturity of the bond and then calculate its duration.
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The yield to maturity YTM of the bond is the rate of return that an investor would earn if they purc...View the full answer
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