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Social Science Clinic => Business => Finance => Topic started by: Bobvance on Mar 29, 2022

Title: A $1,000 par value, 7% annual coupon bond matures in 4 years. The bond is currently priced at ...
Post by: Bobvance on Mar 29, 2022

Question 1

A $1,000 par value, 7% annual coupon bond matures in 4 years. The bond is currently priced at $1,034.65 and has a YTM of 6.0%. and has a Macaulay duration of 3.61 years.  What is the modified duration?
◦ 3.63 years
◦ 3.41 years
◦ 3.18 years
◦ 4.04 years

Question 2

A $1,000 par value, 7% annual coupon bond matures in 4 years. The bond is currently priced at $1,034.65 and has a YTM of 6.0%. What is the Macaulay duration?
◦ 3.41 years
◦ 3.63 years
◦ 3.28 years
◦ 4.00 years

Title: A $1,000 par value, 7% annual coupon bond matures in 4 years. The bond is currently priced at ...
Post by: 3ginamay on Mar 29, 2022

Answer 1

3.41 years

Answer 2

3.63 years