Question: 4. [4] Use the Excel function DURATION to calculate the Macauleay duration of the semiannual coupon bonds in the table below. The bonds are redeemable

4. [4] Use the Excel function DURATION to calculate the Macauleay

4. [4] Use the Excel function DURATION to calculate the Macauleay duration of the semiannual coupon bonds in the table below. The bonds are redeemable at par and are yielding 8% compounded semiannually. Note that for same maturity, duration can decline when coupon rate increases. Coupon rate Term to maturity 1 1% 3% 6% 10% 2 5 10 20 9.3 8.33 7.45 6.77 50 100 00 ANS: At t = 10, D = 9.3, 8.33,7.45,6.77

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