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Bond with: Par Value: $1,000 Maturity: 4 years Coupon Rate: 6% Current Annualized 6-month yield of 9%. Assume that coupon payments are made semiannually to

Bond with:

Par Value: $1,000

Maturity: 4 years

Coupon Rate: 6%

Current Annualized 6-month yield of 9%.

Assume that coupon payments are made semiannually to bondholders and that the next coupon payment is expected in 6 months.

1.) What is the bond's duration (annualized)? Compare this with the approximate duration.

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