A bond has a face value of $1000, pays an annual coupon of 5%, has 7 years to maturity and is presently priced at $832. What are the duration and the yield to maturity for this bond?

1. Cannot be computed with the information provided
2. 8.25% and 7
3. 5% and 7
4. 8.25% and 5.97
5. 8.5% and 5.97

Answer this question using the information from the following question. If the appropriate discount rate for the bond previously described jumps (increases) by 1% per year what are the duration-estimated and genuine returns expected?

1. -5.51% and -5.3%
2. -5.50% and -6.5%
3. -6.46% and -6.5%
4. -6.46% and -6.42%
5. Cannot be computed with the information provided