Consider a 12%-coupon bond with a remaining maturity of 2 years. The bond pays coupons annually, so

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Consider a 12%-coupon bond with a remaining maturity of 2 years. The bond pays coupons annually, so there are two remaining payments. What is the duration of the bond if the yield-to-maturity is 5%?

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: Apr 26, 2023 07:47 AM

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Consider a 12%-coupon bond with a remaining maturity of 2 years. The bond pays coupons annually, so

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The duration of a bond measures its sensitivity to changes in interest rates It is calculated as a w... View the full answer

Introduction To Corporate Finance

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