Find the duration of the following pure discount bonds: a. $1000 face value bond maturing in one

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Find the duration of the following pure discount bonds:

a. $1000 face value bond maturing in one year currently selling for $900.

b. $1000 face value bond maturing in two years currently selling for $800.

c. $2000 face value bond maturing in three years currently selling for $1400

d. Portfolio consisting of one of each of the three bonds listed in parts a, b, and c of this problem

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Financial Trading And Investing

ISBN: 9780323909556

3rd Edition

Authors: John Teall

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Question Posted: Dec 31, 2023 01:07 AM

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Find the duration of the following pure discount bonds: a. $1000 face value bond maturing in one

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a i First find the yield to maturity ytm of the bond ytm 0111 ii Use ytm from part i in the ...View the full answer

Financial Trading And Investing

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