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Two years ago, Gadget Geek Inc. ( GG ) issued a high - yield bond with a coupon rate of 1 5 % , paying
Two years ago, Gadget Geek Inc. GG issued a highyield bond with a coupon rate of paying semiannual coupons. When originally issued the bond was sold at par and had four years until maturity. Currently, GG bonds have a yieldtomaturity of By how much is the duration of GG bonds higher than that of an AAA rated zerocoupon bond with an interest rate of EAR and months until maturity? Report a negative number if GG has the lower duration of the two.
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