Question
21. You are provided with the following information for a bond, and a discount rate of...
21. You are provided with the following information for a bond, and a discount rate of 13% is relevant, what is the duration for the bond?
Bond Duration = PVF*CF*t PVF*CF Year Cash Flow 1 $105 2 105 3 105 4 105 5 105 5 $1,000
Homework Answers
Answer #1
Ans:- In this question, we need to find the Bond Duration.
Duration is calculated by PV of cash flow * t (time period) / PV of cash flow or current Bond Price.
Therefore, the Duration of Bond is 4.09.
Note:- Pls go through the images feel free to ask any doubt.
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