1. Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 10%. 2. A pension plan is obligated to make disbursements of $1 million, $2 million, and $1 million at the end of each of the next three years, respectively. Find the duration of the plan's obligations if the interest rate is 10% annually. If the level of interest rates goes down by 50 basis points (one basis point is 0.01%), how much do you expect the pension plan's obligation to go up (in percentage terms)? 3. Rank the following bonds in order of descending duration. Bond Coupon Time to Maturity Yield to Maturity A 15% 20 (years) 10% B 15 15 10 0 20 10 D 8 20 E 15 15 10 15