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A bond with a coupon rate of 8 percent sells at a yield to maturity of 9 percent. If the bond matures in 10 years,

A bond with a coupon rate of 8 percent sells at a yield to maturity of 9 percent. If the bond matures in 10 years, what is the Macaulay duration of the bond? What is the modified duration?

Assume the bond in the previous problem has a yield to maturity of 7 percent. What is the Macaulay duration now? What does this tell you about the relationship between duration and yield to maturity?

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