Evaluate duration of the bond


Consider a bond with annual coupon payments of $100, a principal payment of $1,000 in 5 years, and a price of $1,000. What is the duration of the bond now? What is the duration of the bond in 3 years?

Duration must be calculated for both now and in 3 years.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Evaluate duration of the bond
Reference No:- TGS050191

Expected delivery within 24 Hours