A bond with a coupon rate of 8 percent sells at a yield to maturity of 10 percent. If the bond matures in 15 years, what is the Macaulayduration? (Do not round intermediate calculations. Round your answer to 3 decimal places.)Macaulay durationYears

Coupon Rate =8%Coupon Amount =1000*8% =80Years =15Yield to maturity =10% ie discount…

Answered: A bond with a coupon rate of 8 percent…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A bond with a coupon rate of 8 percent sells at a yield to maturity of 10 percent. If the bond matures in 15 years, what is the Macaulay duration? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Macaulay duration Years