Calculate or solve the duration of the bond

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A $100,000 bond has a term to maturity of one year. There are two coupon interest payments yet to be paid, one due in 6 months and the second to be paid along with the face value when the bond matures in one year. The coupon rate is 6% per annum, payable half-yearly, and the yield to maturity is 4% per annum, compounded half-yearly. The current price of the bond in $101,941.56.

Question 1: Calculate the duration of the bond.

Reference no: EM132508771

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