What is the duration of bond

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Reference no: EM131923934

1. You purchased a bond today with a face value of $100,000. It pays coupons semiannually at an annual rate of 8%. It matures in 7 years and has an annual YTM of 5%. What is the duration of the bond?

2. Three days after you bought the bond in the previous question, the YTM increased to 5.2%. Use the duration from the previous question to estimate your holding period return over the three days.

Reference no: EM131923934

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