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

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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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ISE Financial Markets And Institutions

ISBN: 9781265561437

8th International Edition

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

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Question Posted: Jul 25, 2024 06:04 AM

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

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