What is the duration of the bond with sixteen years maturity


Problem: Financial Markets & Institutions

What is the bond price of a $1,000 face value bond, with an 8% coupon rate paid semi-annually, that has a required return of 7.5% if

• The bond has 16 years maturity?

• The bond has 20 years maturity?

• What is the Duration of the bond with 16 years maturity, given the above information?

• What is the Duration of the bond with 20 years maturity, given the above information?

The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.

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