7. Consider three five-year Treasury bonds at par ($1,000) with coupon of 2%. 4%, and 6% respectively.

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(a) Compute their durations. (b) What can you conclude about the relationship between duration and coupon?

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Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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Posted Date: Mar 15, 2024 01:08 AM

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7. Consider three five-year Treasury bonds at par ($1,000) with coupon of 2%. 4%, and 6% respectively.

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To compute the durations of the three Treasury bonds we need to calculate the weighted average time ... View the full answer

Financial Markets and Institutions

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