Exercise 4.2.3 Consider a coupon bond and a traditional mortgage with the same maturity and payment frequency.
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Exercise 4.2.3 Consider a coupon bond and a traditional mortgage with the same maturity and payment frequency. Show that the mortgage has a smaller MD than the bond when both provide the same yield to maturity.1 For simplicity, assume that both instruments have the same market price.
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Related Book For 
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ISBN: 9780521781718
1st Edition
Authors: Yuh-Dauh Lyuu
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