Debt & Risk
Year CF PV@YTM % of Total PV % x Year
1 105 96.77 .090
2 105 89.19 .083
3 105 82.21 .076
4 105 75.77 .070
5 1105 734.88 .681
1078.82 1.00
Example (Bond 1)
Calculate the duration of our 10.5% bond @ 8.5% YTM
barry
(Barry)
#1