Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:1. WAY Co., issued a 5-year bond with
a face value of P50,000 with a
coupon rate of 10% on a semiannual
basis and a yield to maturity of 8%
per annum compounded
semiannually. The Macaulay duration
would be closest to:
O a. 8
О Б.4.20
с. 8.30
O d. 8.19
О е. 9.21
e.9
Transcribed Image Text:2. Using information in number 1, the
modified duration would be closest
to:
О а.4.00
ОБ.7.88
Ос. 7.94
O c.
O d. 8.20
O e.
Ое.7.80
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