Question
Duration changes according to the yield to maturity. Of course, thats because the yield to maturity is the rate you can discount by to match
Duration changes according to the yield to maturity.
Of course, thats because the yield to maturity is the rate you can discount by to match a bonds market value.
Can you discover a rule of thumb that estimates the Duration of a bond based upon maturity and YTM?
That would be very hard. Especially given that there are different coupon rates.
But lets say the coupon rate equals the YTM.
That would create a par value bond.
Create a data table or use some other method to see if you can find any rule of thumb.
Note: There is no right answer (but you must show work)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started