Duration Exercise (2)

Duration Exercise (2) - POW#6:DurationExercise

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POW #6: Duration Exercise You are evaluating an investment in an annual bond with exactly four years  to maturity.  The bond’s coupon rate is 10% and the bonds current YTM is  13%.   1. Calculate the bond’s Macaulay duration and modified duration. 754.807/1000 0.75481 2. How would you explain the concept of duration to an inexperienced  investor? What factors influence duration?
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