Question

The duration (in years) of a $1000, 2-year, 8% coupon bond (interest paid semi-annually) is _____...

The duration (in years) of a $1000, 2-year, 8% coupon bond (interest paid semi-annually) is _____ year(s) when market rates are 10%?

A.

1.91
B.

1.94
C.

2.00
D.

1.89
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

ALL CALCULATIONS ARE SHOWN, NO EXCEL FUNCTION IS USED. ONLY PRESENTED IN EXCEL TABLE FORM

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