A bond has a Macaulay duration equal to 8.5 and a yield to maturity of 6.5%....

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Question

A bond has a Macaulay duration equal to 8.5 and a yield to maturity of 6.5%. What is the modified duration of this bond? The

business finance

Answer 1

Answer #1

Modified duration Duration (1+YTM), 7.98 [8.5 (1+0.065)

Answer 2

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