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A zero coupon bond matures in 7 years and is trading at a market yield of...

A zero coupon bond matures in 7 years and is trading at a market yield of 2.75%. What is the Macaulay’s duration of the bond.

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Answer #1

maculay duration of zero coupon = maturity of bond

=7 years

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in zero coupon bond we will only have maturiy amout and no interet amount

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