Question

a. What is the duration of a four-year Treasury bond with a 4.5 percent semiannual coupon selling at par?
b. What is the duration of a three-year Treasury bond with a 4.5 percent semiannual coupon selling at par?
c. What is the duration of a two-year Treasury bond with a 4.5 percent semiannual coupon selling at par?

Answer 1

Answer:

Following is attached the solution for each part of the question given.

I hope it will help you a lot!

Explanation: