Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Loanable Funds Theory
The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curv…
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A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) X Answer is complete but not entirely correct. Duration Macaulay 6.420 X years Modified 7.180 X years
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Transcribed Image Text:A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) X Answer is complete but not entirely correct. Duration Macaulay 6.420 X years Modified 7.180 X years
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A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Duration Macaulay 6.420 years Modified 7.180 X years
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Transcribed Image Text:A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Duration Macaulay 6.420 years Modified 7.180 X years
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56) They said this answer is incorrect what do I do?

A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Duration Macaulay 6.420 years Modified 7.180 X years
expand button
Transcribed Image Text:A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Duration Macaulay 6.420 years Modified 7.180 X years
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