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Calculate the duration of a 2 year bond that pays semiannually and has a 7% yield...

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Question

Finance

Calculate the duration of a 2 year bond that pays semiannuallyand has a 7% yield if the coupon rate is 6%.

1.81

1.86

1.91

1.96

None of the above

Answer & Explanation Solved by verified expert
3.7 Ratings (540 Votes)
K Nx2Bond Price Coupon1 YTM2k Par value1 YTM2Nx2k1K 2x2Bond Price 610002001 7200k    See Answer
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Calculate the duration of a 2 year bond that pays semiannuallyand has a 7% yield if the coupon rate is 6%.1.811.861.911.96None of the above

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