A $1,000 face value bond has a 7 percent coupon and pays interest semiannually. The bond matures in 2 years and has a yield to maturity of 6.8 percent. What is the Macaulay duration?
A) 1.80 years
B) 1.85 years
C) 1.90 years
D) 1.93 years
E) 1.97 years
Correct Answer:
Verified
Q81: Identify and briefly explain four of Malkiel's
Q84: Phil owns a 7 percent,semiannual coupon bond
Q86: A 6 percent,semiannual coupon bond has a
Q87: A bond has a modified duration of
Q89: Explain the conditions under which an investor
Q89: A bond has a Macaulay duration of
Q90: A zero-coupon bond has a par value
Q91: A bond has a Macaulay duration of
Q92: A bond has a modified duration of
Q93: Josh is saving money to purchase a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents