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1. A) Calculate the Price of the following Bonds. A 2% annual coupon bond, face value $10,000 maturing on Feb 21, 2023 A 3% annual

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1. A) Calculate the Price of the following Bonds. A 2% annual coupon bond, face value $10,000 maturing on Feb 21, 2023 A 3% annual coupon bond, face value $5,000 maturing on Feb 21, 2023 1. 2. Spot rates (STRIP rates) are 1.200%, 1.500%, 1.800%, 2.100%, and 2.200% for years 1-5 respectively. Assume the bond pays interest at the end of each year, and both coupon and principal at the end of the final year. There are five interest payments remaining on both bonds. B). Calculate the DURATION of the Bonds Bond AB Total 2 Price 2 1 1 Duration 1 1

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