14.Using the Single Bond Data

a. Construct a Two-Way Data Table to demonstrate the impact of the coupon rate and the time to maturity on the bonds duration using:

i. Coupon Rates of 0%, 5%, 10%, 15%, and 20%.

ii. Maturities of 2 years, 4 years, 6 years, 8 years, and 10 years.

b. How is a bonds duration impacted by varying the coupon rate?

c. How is a bonds duration impacted by varying the time to maturity?

d. What implications would these impacts have for a bond investor if interest rates change?

Single Bond Data

Bond 1:

YTM: 10%

Coupon Rate: 14%

Maturity (Years): 12

Face Value: $1,000