For the first problem
Duration = 9.27
For the second problem
At first find YTM = 9.12%
Then find duration = 7.50
You can check that this is true by looking at:
http://www.ronakke.com/YTM-Duration-Conv...
You find a bond with 20 years until maturity that has a coupon rate of 8.7 percent and a yield to maturity of 10.8 percent. What is the Macaulay duration? The modified duration?
What is the Macaulay duration of a 8.4 percent coupon bond with eleven years to maturity and a current price of $951.60? What is the modified duration?
Needs to be in years?
