Consider a bond with a face value of $1,000, a coupon rate of 0%, a yield to maturity of 9%, and seven years to maturity. This bond’s duration is

739 views
0

Consider a bond with a face value of $1,000, a coupon rate of 0%, a yield to maturity of 9%, and seven  years to maturity.  This bond’s duration is:

  1. A) 7 years
  2. B) 5 years
  3. C) 6 years
  4. D) 0 years
  5. E) None of the above
0

Answer: D

 

: Duration: n = 7 years

Contact us today

Ask for our academic services

Copyright SmartStudyHelp 2016. All Rights Reserved