A pure discount bond with maturity N is a bond with no payments at times t =
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A pure discount bond with maturity N is a bond with no payments at times t = 1, … , N − 1; at time t = N , a pure discount bond has a single terminal payment of both principal and interest. What is the duration of such a bond?
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This means that rates are likely to increase in 2022 ...View the full answer
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Dudhat Vaidehi
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