Question

Consider the following.
a. What is the duration of a four-year Treasury bond with a 10 percent semiannual coupon selling at par?
b. What is the duration of a three-year Treasury bond with a 10 percent semiannual coupon selling at par?
c. What is the duration of a two-year Treasury bond with a 10 percent semiannual coupon selling at par?
d. Using these results, what conclusions can you draw about the relationship between duration and maturity?



$1.99
Sales0
Views41
Comments0
  • CreatedJanuary 27, 2015
  • Files Included
Post your question
5000