Question: Consider a five-year $1,000 face value, Treasury bond with a 10 yield to maturity selling at par. A) Calculate the duration if the semiannual coupon

Consider a five-year $1,000 face value, Treasury bond with a 10 yield to maturity selling at par.

A) Calculate the duration if the semiannual coupon is 10%

B) Calculate the duration if the semiannual coupon is 12%

C) Calculate the duration if the semiannual coupon is 14%

D) Plot the relationship between coupon interest rate (x-axis) and the duration (y-axis). Be sure to label the y-axis, x-axis, and chart title

In your report, identify and comment on the relationship between duration and coupon interest rate.

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