Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a bond with a coupon rate of 7 percent sells at a

A bond with a coupon rate of 7 percent sells at a yield to maturity of...

60.1K

Verified Solution

Question

Finance

A bond with a coupon rate of 7 percent sells at a yield tomaturity of 8 percent. If the bond matures in 11 years, what is theMacaulay duration of the bond? What is the modified duration?

Answer & Explanation Solved by verified expert
4.2 Ratings (789 Votes)
AnswerLet us assume Par value of bond 1000Annual coupon 1000 7 70YTM    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A bond with a coupon rate of 7 percent sells at a yield tomaturity of 8 percent. If the bond matures in 11 years, what is theMacaulay duration of the bond? What is the modified duration?

Other questions asked by students

Q

Use a graphing calculator to do the following an an 1 an 2 and a...

Basic Math
Q

Determine the following probability P 10 x 19 0 4 0 3 O 0 1...

Basic Math
Q

Supply a conclusion to make each argument valid.1. All shrimp are appetizing.Tiger is a shrimp.Therefore,...

Basic Math
Q

El 31 de mayo, Roseville Floral Supply tena un saldo deudor de $155 000 en...

Accounting
Q

3) What is a short-term loan expected to be refinanced? How can a short-term loan...

Accounting
Q

On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses...

Accounting
Q

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage...

Accounting
Q

Current Attempt in Progress Sandhill's, Inc. has provided you with the following financial information: ...

Accounting
Q

1 .Marymount Company makes one product. In the month of April, it made 3,500 units....

Accounting
Q

Assume you won a prize and will recelve $29,000 for the next 9 years. a....

Accounting
Q

Shan Co. is considering a four-year project that will require an initial investment of $9,000....

Finance
Q

Please include how you worked out each one 10.20 Find the missing figures for...

Accounting