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13) What are the key rate durations and total effective duration for a two-year annual-paying bond given the following data? (Assume equal weighting for each

13) What are the key rate durations and total effective duration for a two-year annual-paying bond given the following data? (Assume equal weighting for each year). What does this duration represent relative to a bond with a duration of 5?

High Price

Low Price

Current Price

Curve

Year 1

101.63

99.79

100.50

25bps

Year 2

102.75

101.24

102.00

17bps

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