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1Write down the equation that is used to compute the time t duration of a three year 4.5% coupon bond (with face value equal to 10H) when the yield...
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3. 1Write down the equation that is used to compute the time t duration of a three year 4.5% coupon bond (with face value equal to 10H) when the yield to maturity for coupon bonds expiring in t+1,t+2 and t+3 are respectively 3%, 4% and 5%. Use the available numbers to indicate precisei}F how you would compute the weights in the duration formula.