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

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Consider the following. ( LG 3-7 )

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

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

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

d. Using these results, what conclusions can you draw about the relationship between duration and 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 four-year Treasury bond

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Financial Markets And Institutions

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