Suppose the duration D of a coupon-bearing coupon bond B at the current time t is defined

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Suppose the duration D of a coupon-bearing coupon bond B at the current time t is defined by 

D(B, t) = ci(ti - t)e-R(ti1) + (n  1) FeR(tn i=1 -1)] / B.

where ci,i = 1, 2, ··· ,n, is the ith coupon on the bond paid at time ti,F is the face value. Here, R is the yield to maturity on the bond, which is given by the solution to

Show that n B = ce-R(ti-t) + Fe-R(tn1) i=1 D(B, t) = = - 1 JB BRGive a financial interpretation of duration. 

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