What is the duration of a two-year zero-coupon bond

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a. What is the duration of a two-year bond that pays an annual coupon of 10.4 percent and has a current yield to maturity of 12.5 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616))

Duration years

b. What is the duration of a two-year zero-coupon bond that is yielding 11.5 percent? Use $1,000 as the face value.

Duration years

Reference no: EM131978425

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