question archive Bond Coupon Maturity (Years) Yield to Maturity A 3,21% 8 13,64% B 6,8% 7 14,28% C 6% 1 13,57% You own each of the three government bonds
Bond Coupon Maturity (Years) Yield to Maturity A 3,21% 8 13,64% B 6,8% 7 14,28% C 6% 1 13,57% You own each of the three government bonds
Subject:FinancePrice: Bought3
|
Bond |
Coupon |
Maturity (Years) |
Yield to Maturity |
|
A |
3,21% |
8 |
13,64% |
|
B |
6,8% |
7 |
14,28% |
|
C |
6% |
1 |
13,57% |
You own each of the three government bonds. Reinvestment rate of each bond = 85% of current yield to maturity. Face value of bond = $100.
Macaulay Duration of this portfolio is closest to:
A) 5.19 years
B) 5.42 years
C) 3.82 years
D) 5.09 years
E) 6.11 years
