Question
a three year government bond makes annual coupon payments of 5% (this is the annual coupon rate) and offers a yield to maturity of 1%
a three year government bond makes annual coupon payments of 5% (this is the annual coupon rate) and offers a yield to maturity of 1% (assume a flat yield curve).
What is the time to maturity of a zero coupon bond with the same interest rate risk as this bond? (round to the nearest hundredth)
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
