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1. What are the characteristics of a bond that affect its price volatility? 2. Find the duration of a six-year bond with a coupon rate

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1. What are the characteristics of a bond that affect its price volatility? 2. Find the duration of a six-year bond with a coupon rate of 7.2% when the market rate of interest is 6.5%. (You may use duration example xlsx as an example) 3. Between duration matching and maturity matching, which is the superior method of reducing interest rate risk? Explajn your answer. 4. An investor with a marginal tax rate of 35% is choosing between investing in a municipal bond offering a yield 9.5% and a corporate bond with similar risk. What is the minimum yield the corporate bond must offer for the investor to choose it? 5. What are some considerations for investors when purchasing corporate bonds

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