You own a corporate bond that carries a 5.8 percent coupon rate and pays $10000 at maturity in exactly 2 years. The current market yield on the bond is 6.1 percent. Coupon interest is paid semiannually and the market price is $9944.32. Calculate Macaulay's duration and modified duration.

Question

You own a corporate bond that carries a 5.8 percent coupon rate and pays $10000 at maturity in exactly 2 years.  The current market yield on the bond  is 6.1 percent. Coupon interest is paid semiannually and the market price is $9944.32. Calculate Macaulay's duration and modified duration.

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