Calculate the duration for bond

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1. BCC has issued percent debentures that will mature on July 15, Year 32. Assume that interest is paid and compounded annually. If an investor purchased a $1,000 denomination bond for $1,055 on July 15, Year 1, determine the bond’s yield-to-maturity. Round your answer to two decimal places.

2. Calculate the duration for a bond that has ten years until maturity, a coupon rate of 8%, and the yield to maturity is currently 7%. The bond makes annual payments and the face value is $1000.

Reference no: EM132047063

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