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.

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Answer 1

Answer #1

A B † 5 period cashflow 7 PV Period*Pv 4038.8349515 38.83495146 40 37.7038364 75.40767273 40) 36.6056664 109.8169991 1040) 92

Formulas used :-

Pv =B6/(1.03^A6)

Duration =(D11/C11)/2

(Note :- here period= 6 month)

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Answer 2

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

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