Question

Find the duration of a 7% coupon bond making annual coupon payments if it has three years until maturity and a yield to matur

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Annual Coupon rate Settlement date Maturity date 7% 1/1/2020 1/1/2023 -Nm to 000 YTM 7.40% 11.40% Duration 2.8069 2.7962

Cell reference -

А B Annual Coupon rate Settlement date Maturity date 0.07 =DATE(2020,1,1) =DATE(2023,1,1) YTM 0.074 Duration =DURATION(C3,C4,

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

Add a comment
Know the answer?
Add Answer to:
Find the duration of a 7% coupon bond making annual coupon payments if it has three...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT