(Solution) - Compute Macaulay and modified durations for the following bonds a A -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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Compute Macaulay and modified durations for the following bonds:
a. A 5-year bond paying annual coupons of 4.432% and selling at par.
b. An 8-year bond paying semiannual coupons with a coupon rate of 8% and a yield of 7%.
c. A10-year bond paying annual coupons of 6% with a price of $92 and maturity value of $100.