An insurance company is analyzing the following three bonds, each with five years to maturity, and is

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An insurance company is analyzing the following three bonds, each with five years to maturity, and is using duration as its measure of interest rate risk: ( LG 3-6 )

a. $10,000 par value, coupon rate 8%, r b .10

b. $10,000 par value, coupon rate 10%, r b .10

c. $10,000 par value, coupon rate 12%, r b .10 What is the duration of each of the three bonds?

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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 24, 2024 11:01 AM

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An insurance company is analyzing the following three bonds, each with five years to maturity, and is

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Financial Markets And Institutions

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