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on duration. The modified duration of the bond is 18. Consider the following two bonds: Bond A Bond B $1,000 4 years | 4% Face
on duration. The modified duration of the bond is 18. Consider the following two bonds: Bond A Bond B $1,000 4 years | 4% Face Value $1,000 Maturity Coupon 4 years 8% Assume annual interest payments and 8% Yield to Maturity on the bonds. a) Find the duration of Bond A b) Find the modified duration of Bond A c) What can you say about the duration of Bond B (no need of calculations)
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