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I would like to see this worked in excel . . . . . . . . . Perform instant experiments ( run your own
I would like to see this worked in excel Perform instant experiments run your own numbers, graph the findings, and then
draw the conclusions on whether changing various inputs causes an increase or
decrease in the Bond Duration and by how much.
A What happens when the annual coupon rate is increased?
B What happens when the yield to maturity is increased?
C What happens when the number of payments year is increased?
D What happens when the annual coupon rate is decreased to zero?
E What is the relationship between the duration of a zero coupon bond and
time to maturity?
F Does an increase in the time to maturity always increase the duration of a
coupon bond or is it possible for it to decrease duration at some point? Asked
differently, does the duration curve always go up or can it be hump shaped?
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