The duration (in years) of a $1000, 2-year, 5% coupon bond (interest paid annually) is _____ year(s) when market rates are 10%?

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
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The duration (in years) of a $1000, 2-year, 5% coupon bond (interest paid annually) is _____ year(s) when market rates are 10%?

 

 

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