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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities: Bond Coupon (%) Price (%) 3 87.00 5 106.00 9
Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities:
| Bond Coupon (%) | Price (%) |
| 3 | 87.00 |
| 5 | 106.00 |
| 9 | 137.00 |
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.)
| Bond Coupon (%) | YTM |
| 3 | % |
| 5 | % |
| 9 | % |
b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| Bond Coupon (%) | Duration |
| 3 | years |
| 5 | years |
| 9 | years |
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