Find the duration of a bond that sells for $87 in the market. The bond pays semiannual coupons of $3 and the principle is $100. The bond matures in 4 years.

In order to determine the Macauly we must complete the following table:

period      cash flow       PV of             Period x            

                                       cash flow      PV cash flow          

1                  $3                 $2.91                 $2.91

2                 $3                 $2.83                $5.66

3                 $3                 $2.75                 $8.25

4                 $3                 $2.67               $10.68

5                 $3                 $2.59               $12.95

6                 $3                 $2.51                $15.06

7                 $3                 $2.44                $17.08

8              $103                $81.31              $650.48

Total                                                        $723.07

Macauly duration = $723.07 / $87 = 8.31

Modified Macauly duration = Macauly duration / (1 + r) = 8.31 / 1.03 = 8.07

the correct answer is - no.

winnipeg, canada, is not further away from the equator than moscow, russia, in fact moscow is the city that is further away from the equator. moscow is on a latitude of 55.7558° north, while winnipeg is on a latitude of 49.8951° north, thus putting moscow by 5.8607° further away from the equator than winnipeg is.

answer; dogs;