Explain the concept of duration


Explain the concept of duration and then comment on the statement, “It is possible that a bond with a shorter maturity than another bond may actually have a longer duration and be more price sensitive to interest rate changes.” Explain why a bond with a shorter maturity than another bond could have a longer duration; use examples.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Explain the concept of duration
Reference No:- TGS0518417

Expected delivery within 24 Hours