What is the duration of a three-year, $1,000 Treasury bond with a 12 percent semiannual coupon selling at par? Selling with a yield to maturity of 6 percent? 8 percent? Plot the relationship. What can you conclude about the relationship between duration and yield to maturity? Select one:
What is the duration of a three-year, $1,000 Treasury bond with a 12 percent semiannual coupon selling at par? Selling with a yield to maturity of 6 percent? 8 percent? Plot the relationship. What can you conclude about the relationship between duration and yield to maturity? Select one:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What is the duration of a three-year, $1,000 Treasury bond with a 12 percent semiannual coupon selling at par? Selling with a yield to maturity of 6 percent? 8 percent? Plot the relationship. What can you conclude about the relationship between duration and yield to maturity? Select one:
a. Both the maturity periods have equal duration.
b. When the yield to maturity is increasing the years to maturity will decrease.
c. There is no relationship
d. None of the other three answers are correct
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