Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons...

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Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons...

Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons are paid semiannually. The yield to maturity is 6% and the face value of the bond is $1000.

business finance

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Answer 1

Answer #1

1 Time until Cash payment(years) flow 2 5 PV of PV Factor @ CF(discount PV of CF/price Column (1)* 6% rate=6%) of the bond co

Bond Duration= 3.5048 Years

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Answer 2

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