You bought a $100 par value, 7% annual coupon bond that matures in three year and has a yield-to-maturity of 8%. What is the Macauley duration of this bond? 1.95 years 2.60 years 2.81 years 3.00 years

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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You bought a $100 par value, 7%
annual coupon bond that matures in
three year and has a yield-to-maturity
of 8%. What is the Macauley duration
of this bond? 1.95 years 2.60 years 2.81
years 3.00 years
Transcribed Image Text:You bought a $100 par value, 7% annual coupon bond that matures in three year and has a yield-to-maturity of 8%. What is the Macauley duration of this bond? 1.95 years 2.60 years 2.81 years 3.00 years
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