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What is the effect on the bond duration

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Reference no: EM133206290

A bond is issued on May 21, 2007. A bond has 10 years of maturity. The yield to maturity at issuance is 15%. The bond pays coupon once a year and the coupon rate is 4%. What is the bond's price at the time of issuance? What is the bond's duration at the time of issuance? What is the effect on the bond's duration of increasing the bond's maturity from 10 to 40 years

Reference no: EM133206290

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