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Compute the duration of a bond with a face value of $1,000, a coupon rate of...

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Finance

Compute the duration of a bond with a face value of $1,000, acoupon rate of 7% (coupon is paid annually) and a yield to maturityof 7% for maturities of 2 to 18 years in 1-year increments (so herewe are going to vary the time to maturity and see how durationchanges if N=2, 3 … etc.). What happens to duration as maturityincreases?

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Say the settlement date is 112019 and so for first case thematurity date    See Answer
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Compute the duration of a bond with a face value of $1,000, acoupon rate of 7% (coupon is paid annually) and a yield to maturityof 7% for maturities of 2 to 18 years in 1-year increments (so herewe are going to vary the time to maturity and see how durationchanges if N=2, 3 … etc.). What happens to duration as maturityincreases?

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