Question: A bond with $ 1 , 0 0 0 face value, 1 0 % coupon, market interest rates of % 5 , and 1 0

A bond with $1,000 face value, 10% coupon, market interest rates of %5, and 10 years to maturity.
a. Calculate the duration of the bond. Show calculation.
b. Assume that market interest rates increased to 13%, re-calculate the duration of the bond.
c. Did your calculation reveal any patterns in the relationship between interest rates, coupons, and duration? explain

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