Question: Duration is defined as the weighted average time to maturity of a financial instrument. Explain how duration, price and interest rate risk are related in

Duration is defined as the weighted average time to maturity of a financial instrument. Explain how duration, price and interest rate risk are related in three different cases for bonds (b.1) pure discount bonds (b.2) coupon bonds with the same maturity and different coupons rates (b.3) coupon bonds with similar coupon rates but different maturities.

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