Question: please do not answer in excel! A 12% semiannual paying coupon bond has six years to maturity. The bond is currently trading at par. Using

please do not answer in excel!

A 12% semiannual paying coupon bond has six years to maturity. The bond is currently trading at par. Using a 25 basis point change in yield, a) what is the effective duration of the bond? b) What is the effective duration if the bond is callable at par today? Par value =100 Selected Answer: a) 4.192072 b) 0 A 12% semiannual paying coupon bond has six years to maturity. The bond is currently trading at par. Using a 25 basis point change in yield, a) what is the effective duration of the bond? b) What is the effective duration if the bond is callable at par today? Par value =100 Selected Answer: a) 4.192072 b) 0

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