jmjamesh (1) [Avatar] Offline
#1
How would I begin to rank the durations or effective durations of the following pair of bonds:

Bond A- 8% coupon bond with 20 yr time to maturity selling at part value
Bond B- 8% coupon bond with 20yr maturity time selling below par. Tell me how to beging solving this problem, as simple as possible.

Thanks,

Joyce