You have a one-year, $100,000 bond carries a coupon rate of 10%. The bond will make the payment of accrued interest and one-half of the principal at the end of six months. The remaining principal and accrued interest are due at the end of the year. If the required yield is 20% annually.

What is the duration of the bond?

Answer rating: 100% (QA)

To calculate the duration of a bond we need to determine the weighted average time it takes to recei... View the full answer