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What is the modified duration of an 5% bond with 15 years to maturity that is...

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Finance

What is the modified duration of an 5%bond with 15 years to maturity that is trading at a yield of8%?

Assume that coupon is paidsemi-annually.

(Keep your answer to 2 decimal places, xx.12.)

Answer & Explanation Solved by verified expert
3.6 Ratings (308 Votes)
The coupon is paid semiannuallysemiannual coupon 251000 25Total number of periods 152 30Semiannual YTM 84 4The following table shows the future cash flows and the presentvalue calculation of these cashflows in ExcelPeriodCashflowPresent value of    See Answer
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