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QUESTION 9 Bond A and Bond B are both 2 years from maturity, have a 5% YTM, and pays semiannually. Bond A has a 5%
QUESTION 9 Bond A and Bond B are both 2 years from maturity, have a 5% YTM, and pays semiannually. Bond A has a 5% coupon rate, Bond B has a 9% coupon rate. Calculate the duration of Bond A. QUESTION 10 Bond A and Bond B are both 2 years from maturity, have a 5% YTM, and pays semiannually. Bond A has a 5% coupon rate, Bond B has a 9% coupon rate. Calculate the duration of Bond B. QUESTION 11 What does question #9 and #10 tell you about duration? Duration has a positive relationship with time to maturity. Duration has a negative relationship with time to maturity. Duration has a positive relationship with coupon rate. Duration has a negative relationship with coupon rate. None of the above
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