Question: How do I get a Duration of 5 years using this question? Suppose that insurance company funds this obligation with $10,000 of 8% annual coupon
How do I get a Duration of 5 years using this question?
Suppose that insurance company funds this obligation with $10,000 of 8% annual coupon bonds, selling at par with six years to maturity. This investment has a PV of $10,000 It has a duration of 5 years
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