Assuming a $1,000 par value bond with 5 years to maturity, a 9% semi-annual coupon, and an

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Assuming a $1,000 par value bond with 5 years to maturity, a 9% semi-annual coupon, and an 8% yield to maturity, calculate the bond's price and Macaulay Duration.

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Posted Date: May 14, 2024 03:52 AM

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Assuming a $1,000 par value bond with 5 years to maturity, a 9% semi-annual coupon, and an

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Expert Answer:

To calculate the bonds price we can use the following formula Price CFt 1 YTM22t Where CFt coupon pa... View the full answer

Fundamentals of Investments

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