Compute the bonds duration using the basic duration

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A bond hasjust been issued. The bond will mature in 5 years and has a yield to maturity of 10%. The bonds annual coupon rate is 6% and the face 1tralue of the Iaond is 51,900. Coupons will he paid quarterly.

a. Compute the bonds duration using the basic duration formula, i.e., the Macaulay duration formula {DO NOT use Excel's Duration function or the van function dduration].

Reference no: EM133111732

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