7. Consider three five-year Treasury bonds at par ($1,000) with coupon of 2%. 4%, and 6% respectively.
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Question:
7. Consider three five-year Treasury bonds at par ($1,000) with coupon of 2%. 4%, and 6% respectively.
(a) Compute their durations. (b) What can you conclude about the relationship between duration and coupon?
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
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