Question: There is a 30-year bond with a 9 percent coupon and a 6 percent yield to maturity. The bond is callable in 10 years at

There is a 30-year bond with a 9 percent and a 6 percent yield to maturity. The bond is callable in 10 years at par value. What is the Macaulay duration of the bond assuming it is not called? What is the Macaulay duration if the bond is called? Which number is more relevant?

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Duration to maturity 10306 103 3009 06 06 09103 60 1 Duration to maturity 13309 years Duration ... View full answer

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