Consider a Bond with annual cash flows of $500 and a time to maturity of three years.

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Consider a Bond with annual cash flows of $500 and a time to maturity of three years. The current interest rate is 8% p.a. What is the security’s duration?

a.1.95

b.1.45

c.2.45

d.2.77

e.1.22

Related Book For answer-question

Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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Posted Date: May 12, 2022 03:47 AM

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Consider a Bond with annual cash flows of $500 and a time to maturity of three years.

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Calculation of Duration Year T Cash flowsA Discount fac... View the full answer

Introduction to Corporate Finance

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