Consider a bond with annual coupon payments of $100,a principal payment of $1,000 in 10 years, and

Question:

Consider a bond with annual 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? Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...