Question: In the spreadsheet below, create a Data Table in which the duration is computed as a function of the coupon rate (coupon = 0%, 1%,

In the spreadsheet below, create a Data Table in which the duration is computed as a function of the coupon rate (coupon = 0%, 1%, ? , 11%). Comment on the relation between the coupon rate and the duration.

A CHANGING THE COUPON RATE Effect on Duration 1 2 Current date

A CHANGING THE COUPON RATE Effect on Duration 1 2 Current date 3 Maturity, in years 4 Maturity date 5 YTM 6 Coupon 7 Face value 21-May-07 21 21-May-27 15% 4% 1,000 8 9 Duration 9.03982

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