CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Consider a four-year, 5% annual coupon payment bond. Its yield to maturity is 10% and its price is 84.16 per 100 of par value.

To calculate Macaulay duration, what should be the weight of the last payment of 105?

A. 0.8750
B. 0.7172
C. 0.8522
Correct Answer: C

The total of present value is 84.16. The weight is 71.72/84.16 = 0.8522.

User Contributed Comments 1

User Comment
janglejuic 71.72 / (4.55+4.13+3.76+71.72)
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