Assignmentconsider three treasury bonds each of which has a, Ask an Expert

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Assignment:

Consider three Treasury bonds each of which has a 10 percent semiannual coupon and trades at par.

Requirement:

Question 1: Calculate the duration for a bond that has a maturity of four years, three years, and two years?

Question 2: What conclusions can you reach about the relationship of duration and the time to maturity? Plot the relationship.

Note: Please provide equation and explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148277

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