What is the duration of the bond

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Reference no: EM13908683

Consider a bond with annual coupon payments of $100, a principal payment of $1,000 in 10 years, and a cost of $1,000. Assume a flat yield curve with a 10% yield to maturity. What is the duration of the bond? If the yield curve remains unchanged, what is the bond's duration in three years? In five years? In eight years?

Reference no: EM13908683

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