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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond coupon (%) Price (%)
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100.
Bond coupon (%) | Price (%) |
2 | 82.5 |
3 | 101.50 |
9 | 132.50 |
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.)
Bond COupon % | YTM |
2 | |
3 | |
9 |
b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Bond COupon % | Duration |
2 | |
3 | |
9 |
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