($1,077.

22) =PV(5%, 10, 60, 1000)

($1,104.13) =PV(8%, 7, 100, 1000)

-$1,104.13
 T
C  Par Value
PB  
t 1 (1 r )
t
(1 r )
T
 12% =RATE(5, 100, -928, 1000) 12%

13.98% =RATE(3, 100, -975, 1100)

13.98%

5.48% =RATE(10, 60, -1110, 1120)

annual YTC 10.95% =B41*2
 T
C  Par Value
PB  
t 1 (1 r )
t
(1 r )
T
Time CF PV of CF Weight A 10-year bond pays annual coupon rate 5%, bond yield 8%, p
1 50 46.2963 0.057965 0.057965
2 50 42.86694 0.053671 0.107342
3 50 39.69161 0.049695 0.149086
t
4
5
50 36.75149 0.046014 0.184057
50 34.02916 0.042606 0.213029 wt  CF t (1  y ) Price
6 50 31.50848 0.03945 0.236699 T
7
8
50 29.17452 0.036528 0.255693
50 27.01344 0.033822 0.270575
D   t wt
9
t 1
50 25.01245 0.031317 0.281849
10 1050 486.3532 0.608933 6.089328

798.6976 1 7.845624
upon rate 5%, bond yield 8%, par value is $1000. Calculate the duration of the bond.

t
y ) Price