# Question: Consider a bond with annual coupon payments of 100 a principal

Consider a bond with annual coupon payments of $100,a principal payment of $1,000 in 10 years, and a cost of $1,000. Assume a flat yield curve with a 10% yield to maturity. What is the duration of the bond? If the yield curve remains unchanged, what is the bond’s duration in three years? In five years? In eight years?

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