Macaulay duration, There is a 9 percent coupon bond with six years to maturity and a , Finance Basics

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Macaulay duration

Problem:

There is a 9 percent coupon bond with six years to maturity and a current price of $958.50. What is the dollar value of an 01 for the bond?
You find a bond with 14 years until maturity that has a coupon rate of 8.2 percent and a yield to maturity of 9.6 percent. What is the Macaulay duration? The modified duration?

Please explain in detail and show all work.

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Finance Basics: Macaulay duration

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Q : Macaulay duration

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Finance Basics: Macaulay duration

Reference No:- TGS0877624

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Recent Questions Asked Finance Basics

Q : Hedge ratio of an at-the-money straddle

Q : Effective annual risk-free rate of interest

Q : Interest rate was paid on the construction bonds

Q : Yield to call for these bonds

Q : Macaulay duration

Q : What is their current yield

Q : What is the maximum price

Q : What is the yield to call

Q : What is the expected maket value

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Macaulay duration

Reference No:- TGS0877624

Recent Questions Asked Finance Basics

Q : Hedge ratio of an at-the-money straddle

Q : Effective annual risk-free rate of interest

Q : Interest rate was paid on the construction bonds

Q : Yield to call for these bonds

Q : Macaulay duration

Q : What is their current yield

Q : What is the maximum price

Q : What is the yield to call

Q : What is the expected maket value

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