Question: To illustrate how Macaulay duration changes with maturity, we consider a bond with yield y = 7% for different maturities, including perpetuity and different values

To illustrate how Macaulay duration changes with maturity, we consider a bond with yield y = 7% for different maturities, including perpetuity and different values of coupons:

a) zero coupon bonds b) discount bonds with coupon rate c = 1.5%

c) par bonds d) premium bonds with coupon rate c = 12.5%

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