Question: 1a) Compute the Macaulay duration for a 5-year bond paying annual coupons of 7% and having a yield to maturity of 4.5%. Answers: a. 4.42

1a) Compute the Macaulay duration for a 5-year bond paying annual coupons of 7% and having a yield to maturity of 4.5%.

Answers: a. 4.42 b. 4.66 c. 5.00 d. 4.23 e. 4.78

1b) Compute the Macaulay duration for a 10-year zero-coupon bond having a yield to maturity of 8.5%.

Answers: a.

10.00
b.

9.22
c.

9.12
d.

9.72
e.

10.33

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