Calculate the maculay duration

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Reference no: EM132726252

You are considering a bond with one year to maturity paying 10h% coupon ($50 coupon semiannually). The bond will pay two more CF's: one coupon 6 months from now and then the final coupon plus 1000 par one year from now.

Assume the yield to maturity of this bond is 12%. Use the average time method to calculate the Maculay Duration (average time to receive CF). Can use Excel.

Reference no: EM132726252

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