How does duration differ from maturity

Reference no: EM13293886

• a. What is the duration of a two-year bond that pays an annual coupon of 10 percent and has a current yield to maturity of 12 percent? Use $1,000 as the face value.
• b. What is the duration of a two-year zero-coupon bond that is yielding 11.5 percent? Use $1,000 as the face value.
• c. Given these answers, how does duration differ from maturity?

Reference no: EM13293886

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