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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Consider the following. ( LG 3-7 )
a. What is the duration of a four-year Treasury bond with a 10 percent semiannual coupon selling at par?
b. What is the duration of a three-year Treasury bond with a 10 percent semiannual coupon selling at par?
c. What is the duration of a two-year Treasury bond with a 10 percent semiannual coupon selling at par?
d. Using these results, what conclusions can you draw about the relationship between duration and maturity?
( LG 3-7 )
Features of Duration
The preceding examples suggest several important features of duration relating to the time remaining to maturity, yield to maturity, and coupon interest of the underlying bond being analyzed. These features are summarized in Table 3–11 .

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