Question

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.

Answer #1

maculay duration of zero coupon = maturity of bond

=7 years

**plz leave me positive rating thank you**

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

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iii) Use the modified duration to find the approximate changes
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Problem 7-13
Price and yield
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a.What is the bond's price? Round your answer to the nearest
cent.
$
b.What is the bond's YTM? (Hint: Refer to Footnote 7 for
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%

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(Can you please show how to do this in excel as well as on
paper)

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