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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 goes up to 8%.

1.86

1.89

1.92

1.95

None of the Above

Answer & Explanation Solved by verified expert
4.1 Ratings (588 Votes)
K Nx2Bond Price Coupon1 YTM2k Par value1 YTM2Nx2k1K 2x2Bond Price 810002001 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 goes up to 8%.1.861.891.921.95None of the Above

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