What is the Fisher-Weil duration for a $100 000 bond with 24 months to maturity and 12% p.a.coupon? Assume that the four consecutive semi-annual yields are 4% p.a. ,5% p.a. ,7% p.a.and 8% p.a.respectively.

A) $ 1.8443 $ years
B) $ 1.912 $ years
C) $ 1.988 $ years
D) $ 2.107 $ years

Question

What is the Fisher-Weil duration for a $100 000 bond with 24 months to maturity and 12% p.a.coupon? Assume that the four consecutive semi-annual yields are 4% p.a. ,5% p.a. ,7% p.a.and 8% p.a.respectively.

A) $ 1.8443 $ years
B) $ 1.912 $ years
C) $ 1.988 $ years
D) $ 2.107 $ years

Quizplus · Accepted Answer

According to equation 6.10,we can calculate the Fisher-Weil duration as follows: D = (0.5)5882.35/111356.77 + (1)5738.88/111356.77 + (1.5)5544.81/111356.77 + (2)94190.72/111356.77 = 1.8443 years.

What Is the Fisher-Weil Duration for a $100 000 Bond 1.8443 1.8443 1.8443

What Is the Fisher-Weil Duration for a $100 000 Bond $1.8443$