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What conclusions can you reach about the relationship

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Reference no: EM13317529

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.

Reference no: EM13317529

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