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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities: Bond coupon (%) price (%) 5 88.00 7 107.00 10
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities:
| Bond coupon (%) | price (%) |
| 5 | 88.00 |
| 7 | 107.00 |
| 10 | 138.00 |
a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
ANSWER:
| Bond Coupon (%) | YTM |
| 5 | 6.68% |
| 7 | 6.05% |
| 10 | 5.06% |
b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.
| Bond Coupon (%) | Duration (years) |
| 5 | |
| 7 | |
| 10 |
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