Question: 14. What do you understand by the term duration? Compute the duration of a two year bond with annual coupon rate of 8%. The semi-annual

 14. What do you understand by the term duration? Compute the

14. What do you understand by the term duration? Compute the duration of a two year bond with annual coupon rate of 8%. The semi-annual market interest on the bond is 5%. What would the duration be if the agreement does not allow coupon payment? IM

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