2. What is the effect on a bond's duration of increasing the bond's maturity? As in exercise 1, use a numerical example and plot the answer. Note that as N→∞. the bond becomes a consol (a bond that has no repayment of principal but an infinite stream of coupon payments). The duration of a consol is given by (1 +

YTM)/YTM. Show that your numerical answers converge to this formula.