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3. Define the concept of the bond duration and discuss its application to bond price volatility. Is a 3-year, 10% bond more volatile than a
3. Define the concept of the bond duration and discuss its application to bond price volatility. Is a 3-year, 10% bond more volatile than a 50-50 mix of a 2-year, 10% bond and a 4-year, zero-coupon bond? Why or why not? Assume that the current market interest rate is 10 percent
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