Using an annual effective interest rate of 10%, the Macaulay Duration (in years) of a 10-year 100 p value bond with annual coupons of X is 6.96 years. Calculate X. Give your answer as a decimal rounded to two places (i.e. X.XX).

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Chapter8: Analysis Of Risk And Return
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Using an annual effective interest rate of 10%, the Macaulay Duration (in years) of a 10-year 100 par
value bond with annual coupons of X is 6.96 years.
Calculate X. Give your answer as a decimal rounded to two places (i.e. X.XX).
Transcribed Image Text:Using an annual effective interest rate of 10%, the Macaulay Duration (in years) of a 10-year 100 par value bond with annual coupons of X is 6.96 years. Calculate X. Give your answer as a decimal rounded to two places (i.e. X.XX).
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