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A the duration (in years) of a two year bond with 8% annual coupon payment $1000.00...

A the duration (in years) of a two year bond with 8% annual coupon payment $1000.00 per value and yield to maturity of 9% is

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Answer #1
ytm 9.00%
year PMT PV of PMT weight year * weight
1 80 73.39449541 0.07470870459 0.07470870459
2 1080 909.0143927 0.9252912954 1.850582591
sum 982.4088881 1.93 duration

hence duration = 1.93

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