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Find the duration of a 5% coupon bond making annual coupon payments if it has three...

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Finance

Find the duration of a 5% coupon bond making annualcoupon payments if it has three years until maturity and a yield tomaturity of 6.3%. What is the duration if the yield to maturity is10.3%?

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4.5 Ratings (1070 Votes)
K NBond Price Coupon1 YTMk Par value1 YTMNk1K 3Bond Price 510001001 63100k 10001 631003k1Bond Price 96544PeriodCash FlowDiscounting factorPV Cash FlowDuration CalcConvexity    See Answer
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Find the duration of a 5% coupon bond making annualcoupon payments if it has three years until maturity and a yield tomaturity of 6.3%. What is the duration if the yield to maturity is10.3%?

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