Vijay Find the duration of a 4.0% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield tomaturity of 6.0%. What is the duration if the yield to maturity is 6.0% ? Note: The face value of the bond is $100. (Do not roundIntermediate calculations. Round your answers to 4 decimal places.)6% YTM6% YTMYearsYears

Given information in the question Coupon = 100×4%×6/12=2Number of periods=3×2=6Yield =6×6/12=3%…

Answered: Find the duration of a 4.0% coupon bond…

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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