1. A 4-year bond with a 3.5% (annual) coupon is at par. Calculate its duration. 2. Increase the coupon to 5%. Recalculate duration. 3. Back to the original 3.5% coupon. But lengthen maturity to 5 years and recalculate. 4. Calculate the duration of the original bond if its yield-to-maturity increases to 4.5%. 5. Back to the original par case. What is duration if it pays semi-annually? 6. What if it pays annually, but amortizes 50% at the end of year 3? 1. A 4-year bond with a 3.5% (annual) coupon is at par. Calculate its duration. 2. Increase the coupon to 5%. Recalculate duration. 3. Back to the original 3.5% coupon. But lengthen maturity to 5 years and recalculate. 4. Calculate the duration of the original bond if its yield-to-maturity increases to 4.5%. 5. Back to the original par case. What is duration if it pays semi-annually? 6. What if it pays annually, but amortizes 50% at the end of year 3