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The taltola bond has a duration of 2.87 years and Beltola bond has Tk.1,000 par value, 3 years to maturity , and an 10 percent

The taltola bond has a duration of 2.87 years and Beltola bond has Tk.1,000 par value, 3 years to maturity , and an 10 percent yield paying semiannual interests at 12 percent. The current yield curve represents an inverted trend indicating decline in future interest rates. Under these circumstances, you have to decide which bond you have to invest in. Calculate the duration of Beltota bond and tell us which bond you will invest in and why.

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