Compute macaulay and modi?ed durations

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Reference no: EM131190834

Compute Macaulay and modi?ed durations for the following bonds:

a. a 5-year bond paying annual coupons of 3.322% and selling at par

b. an 8-year bond paying semiannual coupons with a coupon rate of 9% and a yield of 8%

c. a 10-year bond paying annual coupons of 5% with a price of $96 and a maturity value of $100

(Hint: You can use the Excel functions Mduration and Duration to calculate the required durations. For c, you will need to use the Excel function to calculate yield before you can calculate Mduration and Duration).

Reference no: EM131190834

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