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1. What is the duration of a four-year Treasury bond with a 10 percent semi-annual coupon selling at par? 2. What is the duration of
| 1. What is the duration of a four-year Treasury bond with a 10 percent semi-annual coupon selling at par? | |||||||||||||||||||
| 2. What is the duration of a three-year Treasury bond with a 10 percent semi-annual coupon selling at par? | |||||||||||||||||||
| 3. What is the duration of a two-year Treasury bond with a 10 percent semi-annual coupon selling at par? | |||||||||||||||||||
| 4. Using these results, what conclusion can you draw about the relationship between duration and maturity? using a graph only with labeled axis. | |||||||||||||||||||
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
