Consider the following. ( LG 3-7 ) a. What is the duration of a five-year Treasury bond

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Consider the following. ( LG 3-7 )

a. What is the duration of a five-year Treasury bond with a 10 percent semiannual coupon selling at par?

b. What is the duration of the above bond if the yield to maturity (ytm) increases to 14 percent? What if the ytm increases to 16 percent?

c. What can you conclude about the relationship between duration and yield to maturity?

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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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Consider the following. ( LG 3-7 ) a. What is the duration of a five-year Treasury bond

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Financial Markets And Institutions

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