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In: Advanced Math

A bond will pay a coupon of $100 at the end of each of the next...

A bond will pay a coupon of $100 at the end of each of the next 3 years and will pay the $1,000 face value at the end of the 3-year period.

What is the bond's (Macaulay) duration when valued using an annual effective interest rate of 20%?

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To solve this problem our approach will be as follows;

Colby Messinger answered 2 years ago
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