What is the duration of a bond

Reference no: EM131793947

Question: What is the duration of a two-year bond that pays an annual coupon of 1 percent and has a current yield to maturity of 2 percent? Use $1,000 as the face value. Round your calculations/answers to two decimals.?

Hint 2: McDUR = PV(cash flows weighted by year of receipt) / PV(cash flows)

Reference no: EM131793947

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