An investor buys a 6% annual payment bond with three years to maturity. The Dond has a yield-to-maturity of 8% and is currently priced at 94.845806 per 100 of par. The bond's Macaulay duration is closest to: 2.62. 3 2.78.

An investor buys a 6% annual payment bond with three years to maturity. The Dond has a yield-to-maturity of 8% and is currently priced at 94.845806 per 100 of par. The bond's Macaulay duration is closest to: 2.62. 3 2.78.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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An investor buys a 6% annual payment bond with three years to maturity. The
bond has a yield-to-maturity of 8% and is currently priced at 94.845806 per 100
of par. The bond's Macaulay duration is closest to:
2.62.
2.78.
2.83.
B
C

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