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A bond has payments of $100 in one year, $100 the following year, and then $1,100...

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Finance

A bond has payments of $100 in one year, $100 the followingyear, and then $1,100 the year after that. If the discount rate is6%, what is the Macaulay Duration of this set of payments?

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4.1 Ratings (752 Votes)
K NBond Price Coupon1 YTMk Par value1 YTMNk1K 3Bond Price 1010001001 6100k 10001    See Answer
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Transcribed Image Text

A bond has payments of $100 in one year, $100 the followingyear, and then $1,100 the year after that. If the discount rate is6%, what is the Macaulay Duration of this set of payments?

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