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A bond with a 3-year maturity has a coupon rate of 6% and a face value...

A bond with a 3-year maturity has a coupon rate of 6% and a face value of $1,000. The coupons are paid annually and the next coupon is due in one year. The bond’s yield to maturity is 9%. What is its Macaulay Duration?

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Answer #1

Macaulay Duration of the given bond= 2.82621 years

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