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.

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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Question

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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