Solution-Compute the duration of a bond with a face value

Compute the duration of a bond with a face value

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Reference no: EM132523887

We are going to analyze the effect of the coupon payment on the duration of the bond. Compute the duration of a bond with a face value of $1,000, a maturity of 10 years and a yield to maturity of 7%. Compute the duration for coupon rates ranging from 2% to 12% (in increments of 1%). What happens to duration as the coupon rate increases?

Reference no: EM132523887

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Compute the duration of a bond with a face value

Reference no: EM132523887

Reference no: EM132523887

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