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note please write answer in text a) Fill in the table to calculate the duration of a two year bond that pays an annual coupon
note please write answer in text
a) Fill in the table to calculate the duration of a two year bond that pays an annual coupon of 9% and has a current yield to maturity of 10%. Use $1,000 as the face value. (20 points) t CF 1/(1+i) CFt/(1+1) CFt/(1+i)' xt 1 2 TOTAL Duration = (6 points) b) Will your answer change if it is a two year zero-coupon bond? Why? (10 points)Step by Step Solution
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