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Consider the following information: Bond A Bond B Maturity=6 years Maturity=? years Yield=8% Yield=8% Coupon rate= 8% Coupon rate= 0% Duration=5 years Duration=6 years Convexity=28
Consider the following information: Bond A Bond B Maturity=6 years Maturity=? years Yield=8% Yield=8% Coupon rate= 8% Coupon rate= 0% Duration=5 years Duration=6 years Convexity=28 Convexity=36 Given the information above, what is the maturity of Bond B? a. 6 years O b. 5 years O c. 4 years O d. 8 years O e. Cannot be determined
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