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Assume that bond trades at 7.125 % yield. What is PV of the $100MM to be paid in 1000 Year? Q.3.2 Calculate the duration of

Assume that bond trades at    7.125 % yield.   What is PV of the $100MM  to  be paid in 1000 Year?

Q.3.2 Calculate the duration of this bond. What happens to bond's duration if yield  goes from 7.125 % to 4%

Q.3.3.  Markets expect rates to go down. Which financial institutions  would be   natural buyers of the 1000Y bond ?

Q.3.4 Does a buyer of the 1000-Y bond  believe that  Safra Republic   Bank will   still exist in 1000 Years? 

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