A 1000 par value 5 annual coupon bond matures in 4 years, Ask an Expert

Finance

A $1,000 par value, 5% annual coupon bond matures in 4 years. The bond is currently priced at $ 965.35 and has a YTM of 6.0%. What is the Macaulay duration?

A. 4.00 years

B. 43 years

C. 3.68 years

D. 2.81 years

2. The ability to obtain a given equity position at a reduced capital investment and therefore magnify returns, is known as

A. hedging.

B. straddling.

C. leverage.

D. triple witching.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92772476

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