Compute the Macaulay duration and modified duration of a 6%, 25-year bond selling at a yield...

Compute the Macaulay duration and modified duration of a 6%, 25-year bond selling at a yield of 9%.

Coupon frequency and compounding frequency are assumed to be semiannual.

Solutions

Expert Solution

Macaulay Duration= 11.09534 years

Modified Duration= 10.61755 years

Calculation as below:

jeff jeffy answered 1 year ago

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