Consider the following. a. What is the duration of a four-year Treasury bond with a 5.5...
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Consider the following. a. What is the duration of a four-year Treasury bond with a 5.5 percent semiannual coupon selling at par? b. What is the duration of a three-year Treasury bond with a 5.5 percent semiannual coupon selling at par? c. What is the duration of a two-year Treasury bond with a 5.5 percent semiannual coupon selling at par? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. Duration of the bond b. Duration of the bond c. Duration of the bond years years years Consider the following. a. What is the duration of a four-year Treasury bond with a 5.5 percent semiannual coupon selling at par? b. What is the duration of a three-year Treasury bond with a 5.5 percent semiannual coupon selling at par? c. What is the duration of a two-year Treasury bond with a 5.5 percent semiannual coupon selling at par? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. Duration of the bond b. Duration of the bond c. Duration of the bond years years years
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To calculate the duration of a bond we need to use the formula Duration 1 12 Yield 1 1 12 Yield2 ... View the full answer
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
Posted Date:
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