Consider the following. (LG 3-7) a. What is the duration of a four-year Treasury bond with a
Question:
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?
LO.1
Step by Step Answer:
Related Book For
Financial Markets And Institutions
ISBN: 9781259919718
7th Edition
Authors: Anthony Saunders, Marcia Cornett
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