What is the duration of a four-year treasury bond with a 10


Question: Consider the following.

a. What is the duration of a four-year Treasury bond with a 10 percent semiannual coupon selling at par?

b. What is the duration of a three-year Treasury bond with a 10 percent semiannual coupon selling at par?

c. What is the duration of a two-year Treasury bond with a 10 percent semiannual coupon selling at par?

d. Using these results, what conclusions can you draw about the relationship between duration and maturity?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the duration of a four-year treasury bond with a 10
Reference No:- TGS02427980

Now Priced at $15 (50% Discount)

Recommended (98%)

Rated (4.3/5)