You are considering the purchase of a coupon Bond with a face value of $1,000 which pays 3.65% (annual) coupons and matures in 16 years. If the current price of the bond is $899.26, what is it's yield-to-maturity? 4.55% O 3.25% 3.65% O 3.45% 4:25%

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A: The objective of the question is to calculate the duration of a bond. Duration is a measure of the…

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A: Variables in the question:Par value=$1000Annual coupon=6% (assumed paid annually)N=4 yearsYTM=6.5%

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A: Price of bond is sum of present value of coupon payment plus present value of par value of bond.

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Q: Radhubhai

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A: Using excel PV function

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Q: R

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