What would be the duration if interest were paid

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Reference no: EM133558135

Case: A six-year, $10,000 CD pays 6 percent interest annually and has a 6 percent yield to maturity.

Question 1: What is the duration of the CD?

Question 2: What would be the duration if interest were paid semiannually?

Question 3: What is the relationship of duration to the relative frequency of interest payments?

Reference no: EM133558135

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