Consider a bond with settlement date 12/12/2003. The maturity date of the bond is 11/15/2012. The coupon rate of the bond is 7% and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 8%.
A. Find the duration of the bond.
B. What is the duration of the bond if coupons are paid annually?
C. Explain the changes of the direction of duration.