Question

Use Excel Spreadsheet, Excel function or financial calculator to calculate duration for a 5-year bond where...

Use Excel Spreadsheet, Excel function or financial calculator to calculate duration for a 5-year bond where i =8% and

i. A zero coupon bond.

ii. A vanilla bond with 10% coupon payment.

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Answer #1

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i. The duration of a zero-coupon bond is its time to maturity = 5 years.

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