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investments questions 3. Suppose you're a financial analyst who has been asked to provide...

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investments questions

3. Suppose you're a financial analyst who has been asked to provide some general information about duration as well as duration analysis of several bonds. You've determined the following two pieces of information: Bond A has a Macaulay duration of 6.5 years and a yield to maturity of 9.5. Bond B has a Macaulay duration of 5.8 years and a yield to maturity of 10.1. a. What does duration measure? b. Which of the two has a higher modifled duration? Show your work and explain how you arrived at your answer. c You're also analyzing a U.S. Treasury STRIPS with a maturity of 6 years and a current value of $456. What's the Macaulay duration (also known as effective duration) of this STRIPS? Show your work and how you arrived at your

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