Consider three Treasury bonds each of which has a 10 percent semiannual coupon and trades at par a Calculate the duration for a bond that has a maturity of four years, three years, and two years b What conclusions can you reach about the relationship of duration and the time to maturity Plot the re...

a Calculate the duration for a bond that has a maturity of four years three years and tw ...

Consider three Treasury bonds each of which has a 10 percent semiannual coupon and trades at par.

Question:

Consider three Treasury bonds each of which has a 10 percent semiannual and trades at par.
a. Calculate the duration for a bond that has a of four years, three years, and two years?
b. What conclusions can you reach about the relationship of duration and the time to Plot the relationship. 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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...