Question
The duration of a 3-year 8% annual coupon bond with a yield to maturity of 10% and par value of $1000 is A. 2.86 B.
The duration of a 3-year 8% annual coupon bond with a yield to maturity of 10% and par value of $1000 is A. 2.86 B. 2.78 C. 2.96 D. 2.68
please show work
2.
What is the most common shape does the yield curve take? Why?(4 points) A. Downward Sloping; Due to Inflation Premium B. Upward Sloping; Due to Inflation Premium C. Downward Sloping; Due to Interest Rate Risk D. Upward Sloping; Due to Interest Rate Risk
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Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue
13th edition
1337099759, 978-1337516440, 1337516449, 978-1337099752
