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b) You are provided with the following information on bonds; Bond A Bond B Face value $1,000 $1,000 Maturity 10 years 10 years Coupon 4%
b) You are provided with the following information on bonds; Bond A Bond B Face value $1,000 $1,000 Maturity 10 years 10 years Coupon 4% 8% Assuming annual interest payments and an 8 percent yield to maturity on the bonds, compute the Macaulay duration for both bonds and comment on your results (20 marks)
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Options Futures And Other Derivatives
Authors: John C. Hull
4th Edition
0130224448, 9780130224446
