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CFA Level 1
Fixed Income

Calculating Macaulay Duration for a Bond

Medium Fixed Income Valuation Duration And Convexity

A bond has a face value of $1,000 and an annual coupon rate of 7%. It pays coupons annually and has a maturity of 10 years. The current market yield for similar bonds is 5%. Calculate the bond's Macaulay duration to assess its interest rate sensitivity.

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