43.Compared to Note X, Note Y:

1. Should have a higher Yield to Maturity.
2. Should have a lower Yield to Maturity.
3. Should have the same Yield to Maturity.
4. Cannot compare the yields to maturity from the information given.
5. None of the above answers are correct.

44.Compared to Note X, Note Y:

1. Should have a longer duration.
2. Should have a shorter duration.
3. Should have the same duration.
4. Cannot compare the durations from the information given.
5. None of the above answers are correct.

Another Note, call it Note Y, is also being issued at par on March 15, 2020 and matures on March 15, 2028. Assume today is March 15. Interest is paid semi-annually on March 15 and September 15 according to the schedule shown below. The coupon rates vary over time but are fixed at the given rates. The next coupon is scheduled for September 15, 2020. Notice the coupon rates are in reverse order from the previous Note. Year Coupon Dates: Coupon 1 2 3 4 15-Sept-2015-Sept-21 15-Sept-22 15-Sept-23 15-Mar-21 15-Mar-22 15-Mar-23 15-Mar-24 8.00% 7.00% 6.00% 5.00% 5 15-Sept-24 15-Mar-25 4.50% 6 7 15-Sept-25 15-Sept-26 15-Mar-26 15-Mar-27 4.00% 3.50% 8 15-Sept-27 15-Mar-28 3.00%