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

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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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