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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities: Bond Coupon (%) Price (%) 7 89.50 9 108.50 10
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities:
Bond Coupon (%) | Price (%) |
7 | 89.50 |
9 | 108.50 |
10 | 139.50 |
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 |
7 | % |
9 | % |
10 | % |
b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Bond Coupon (%) | Duration |
7 | years |
9 | years |
10 | years |
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