Consider a 3 0 - year Bond with $ 1 , 0 0 0 face value, 1

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Consider a $30 -$ year Bond with $ $1, 000$ face value, $10 %$ annual coupon, paid once a year. Assume that interest rates, hence YTM $($ Yield to Maturity $)$ changed from $7 %$ to $8 % .$

How much is the duration of the Bond in years?

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Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

Posted Date: Mar 20, 2024 01:54 AM

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Consider a 3 0 - year Bond with $ 1 , 0 0 0 face value, 1

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Expert Answer:

To calculate the duration of a bond you can use the following formula Duration t CFt 1 YTMt CFt 1 YT... View the full answer

Principles of Accounting

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