Question: Please, solve it by an expert, not by the library! In the fixed income market, there are two types of bonds: Bond A: Newly issued

Please, solve it by an expert, not by the library!
In the fixed income market, there are two types of bonds:
Bond A:
Newly issued coupon bond
Fixed coupon rate of 5.0%
Nominal value of 1000 Euros
Maturity period of 6 years from today
Redeemed in the form of annuity payments, with the first payment one year from now
Current market price: 1023.79 Euros
Bond B:
Perpetual bond
Next coupon payment of 45 Euros to be made in one year
Coupon payments will decrease by 0.50% each year
What is the duration of Bond B?
[NB! Please provide your answer with two decimal places. E.g. if the answer is 123.456 then please type 123.46]
Answer:
 Please, solve it by an expert, not by the library! In

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!