What conclusions can you reach about the relationship


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

a. Calculate the duration for a bond that has a maturity of four years, three years, and two years.

b. What conclusions can you reach about the relationship between duration and the time to maturity? Plot the relationship.

Solution Preview :

Prepared by a verified Expert
Macroeconomics: What conclusions can you reach about the relationship
Reference No:- TGS0656207

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)