What should be the face value of a bond

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Question: What should be the face value of a 5-year bond with 10% yield, paying $10 annual coupons to have duration 4? Find the range of durations that can be obtained by altering the face value, as long as a coupon cannot exceed the face value. If the face value is fixed, say $100, find the level of coupons for the duration to be 4. What durations can be manufactured in this way?

Reference no: EM131637988

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