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

Homework Answers

Answer #1

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

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