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(a) Consider a bond with face value $1, 000, effective annual coupon rate 5% effective annual yield rate of 7% and duration n years. Such a bond has Macaulay duration DMac(n) that depends on n. Find lim DMac(n). n-00 (b) Consider a bond with face value $1,000, effective annual coupon rate 5% effective annual yield rate of j% and duration 10 years. Such a bond has Macaulay duration DMac (j) that depends on j. Find lim DMac(j). j-00

(a) Consider a bond with face value $1, 000, effective annual coupon rate 5% effective annual yield rate of 7% and duration n years. Such a bond has Macaulay duration DMac(n) that depends on n. Find lim DMac(n). n-00 (b) Consider a bond with face value $1,000, effective annual coupon rate 5% effective annual yield rate of j% and duration 10 years. Such a bond has Macaulay duration DMac (j) that depends on j. Find lim DMac(j). j-00

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(a) Consider a bond with face value $1, 000, effective annual coupon rate 5% effective annual yield rate of 7% and duration n years. Such a bond has Macaulay duration DMac(n) that depends on n. Find lim DMac(n). n-00 (b) Consider a bond with face value $1,000, effective annual coupon rate 5% effective annual yield rate of j% and duration 10 years. Such a bond has Macaulay duration DMac (j) that depends on j. Find lim DMac(j).
Transcribed Image Text:(a) Consider a bond with face value $1, 000, effective annual coupon rate 5% effective annual yield rate of 7% and duration n years. Such a bond has Macaulay duration DMac(n) that depends on n. Find lim DMac(n). n-00 (b) Consider a bond with face value $1,000, effective annual coupon rate 5% effective annual yield rate of j% and duration 10 years. Such a bond has Macaulay duration DMac (j) that depends on j. Find lim DMac(j).
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