Question: 6. A. Prepare a duration table for a traditional coupon bond, 6% coupon rate paid annually, $100,000 par value, 10-year maturity, 12% discount rate. B.
6. A. Prepare a duration table for a traditional coupon bond, 6% coupon rate paid annually, $100,000 par value, 10-year maturity, 12% discount rate.
B. Prepare a duration table for a 10-year fully amortizing loan, 6% stated rate, annual payments, $100,000 face value, 12% discount rate.
C. Explain the difference, if any, in the duration of A and B.
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