Question: In Section 24.3 we stated that in 2001 the duration of the 4 5/8s of 2006 was 4.36 years. Construct a table like Table 24.2

In Section 24.3 we stated that in 2001 the duration of the 4 5/8s of 2006 was 4.36 years. Construct a table like Table 24.2 to show that this is so.

Proportion of Total Value (PV(C,J/V) Proportion of Total Value x Time PV(C)

Proportion of Total Value (PV(C,J/V) Proportion of Total Value x Time PV(C) at 4.9% Year 68.75 68.75 68.75 68.75 1068.75 65.54 62.48 59.56 56.78 841.39 0.060 0.058 0.055 0.052 0.060 0.115 0.165 0.209 3 0.775 1.000 3.875 Duration = 4.424 years V= 1085,74 %3D 123 45

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