Question
Calculate the Duration of each of the following assuming a yield to maturity of 5%. 1000 Face Value. Annual payments a. a 10 year zero
Calculate the Duration of each of the following assuming a yield to maturity of 5%. 1000 Face Value. Annual payments
a. a 10 year zero coupon loan
b. a 10 year interest only loan with a 2% coupon
c. a 10 year interest only loan with a 5% coupon
d. a 10 year interest only loan with a 7% coupon
e. a 5 year interest only loan with a 2% coupon
f. a 25 year interest only loan with a 2% coupon
g. a 10 year fully amortized loan with payments based on a 2% interest rate
h. a 10 year fully amortized loan with payments based on a 5% interest rate
i. a 10 year fully amortized loan with payments based on a 7% interest rate
j. a 5 year amortized loan with payments based on a 5% interest rate and a 10 year amortization
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