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(a) Calculate the price and Duration of the following bonds with a face value (principal) of $1000.Assume annual compounding. Coupon Time to Maturity Yield Rate

(a) Calculate the price and Duration of the following bonds with a face value (principal) of $1000.Assume annual compounding. Coupon Time to Maturity Yield Rate Bond 1 6% 2 years 6% Bond 2 0% 2 years 6% Bond 3 0% 10 years 6% (b) Suppose that the yield declines from 6% to 4%. Use the duration measureto estimate the approximate new price for the three bonds

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