Question
a) Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and has a yield to
a) Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and has a yield to maturity of 6%. What is the duration if the yield to maturity is 10%?
b) Find the duration and the convexity of the bond in problem 3 with a yield of 6% if the coupons are paid semiannually
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
