A bond with an annual coupon rate of 11% has three years to maturity. The bond has a $1,000 par value and a yield to maturity of 16%. What is the bond’s Macaulay duration? A bond with an annual coupon rate of 11% has three years to maturity. The bond has a $1,000 par value and a yield to maturity of 16%. What is the bond’s Macaulay duration? a) 2.79 years b) 2.69 years c) 2.89 years d) 3.00 years
A bond with an annual coupon rate of 11% has three years to maturity. The bond has a $1,000 par value and a yield to maturity of 16%. What is the bond’s Macaulay duration? A bond with an annual coupon rate of 11% has three years to maturity. The bond has a $1,000 par value and a yield to maturity of 16%. What is the bond’s Macaulay duration? a) 2.79 years b) 2.69 years c) 2.89 years d) 3.00 years
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 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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A bond with an annual coupon rate of 11% has three years to maturity. The bond has a $1,000 par value and a yield to maturity of 16%. What is the bond’s Macaulay duration? A bond with an annual coupon rate of 11% has three years to maturity. The bond has a $1,000 par value and a yield to maturity of 16%. What is the bond’s Macaulay duration?
a) 2.79 years
b) 2.69 years
c) 2.89 years
d) 3.00 years
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