A $100 000 bond has a term to maturity of one year,with half-yearly coupons set at 10% p.a.Calculate the duration of the bond in periods if the yield is 9%.

A) $ 1.702 $
B) $ 1.882 $
C) $ 1.953 $
D) $ 2.000 $

Name: A $100 000 bond has a term to maturity of one year,with half-yearly coupons set at 10% p.a.Calculate the duration of the bond in periods if the yield is 9%. A) $ 1.702 $ B) $ 1.882 $ C) $ 1.953 $ D) $ 2.000 $
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Question

A $100 000 bond has a term to maturity of one year,with half-yearly coupons set at 10% p.a.Calculate the duration of the bond in periods if the yield is 9%.

A) $ 1.702 $
B) $ 1.882 $
C) $ 1.953 $
D) $ 2.000 $

Quizplus · Accepted Answer

The present value (PV)of the first cash flow = 1.953.

A $100 000 Bond Has a Term to Maturity of One