Debt & Risk
Year CF PV@YTM % of Total PV % x Year
1 105 96.77 .090 0.090
2 105 89.19 .083 0.164
3 105 82.21 .076 0.227
4 105 75.77 .070 0.279
5 1105 734.88 .681 3.406
1078.82 1.00 4.166 Duration
Example (Bond 1)
Calculate the duration of our 10.5% bond @ 8.5% YTM