1. Which one of the following statements is true?

a) The lower the coupon payment of a bond, the shorter is its duration.

b) The lower the rate of return on a bond, the longer is its duration.

c) The duration of a zero coupon bond is always lower than its maturity.

d) Duration calculations ignore time value of money.

2. Suppose that you invest in a bond that has a maturity of 10 years and a face value of 100.000 $. The coupon rate is 12% and pays annually. The yield to maturity is 10%. What would be the clean price at the end of year 6?

a) 108.710,52 $

b) 107.581,57 $

c) 106.339,73 $

d) 104.973,70 $

e) Other: