What is the duration of bond if coupons are paid annually

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Reference no: EM13878394

Consider a bond with settlement date 12/12/2003. The maturity date of the bond is 11/15/2012. The coupon rate of the bond is 7% and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 8%.

A. Find the duration of the bond.

B. What is the duration of the bond if coupons are paid annually?

C. Explain the changes of the direction of duration.

Reference no: EM13878394

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