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bond with 10% coupon , 4 years maturity annual payment with 10% ytm, find the duration...

bond with 10% coupon , 4 years maturity annual payment with 10% ytm, find the duration of the bond  

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Homework Answers

Answer #1

Solution:- Assume Face value of Bond is $1,000.

To Calculate Current Price of Bond-

To Calculate Duration of Bond (DOB)-

DOB =

DOB =

DOB =

DOB = 3.486 years

If you have any query related to question then feel free to ask me in a comment.Thanks.

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