c) (5 points) Next, we are going to analyze the effect of time to maturity on the duration of the bond. Compute the duration of a bond with a face value of $1,000, a coupon rate of 7% (coupon is paid annually) and a yield to maturity of 7% for maturities of 2 to 18 years in 1-year increments (so here we are going to vary the time to maturity and see how duration changes if N=2, 3 etc.). What happens to duration as maturity increases?

d) (5 points) Next, we are going to analyze the effect of the yield to maturity on the duration of the bond. Compute the duration of a bond with a face value of $1,000, a coupon rate of 7% (coupon is paid annually) and a maturity of 10 years as the interest rate (or yield to maturity) on the bond changes from 2% to 12% (consider increments of 1% - so you need to compute the duration for various yields to maturity 2%, 3%, , 12%) . What happens to duration as the interest rate increases?

e) (5 points) Finally, we are going to analyze the effect of the coupon payment on the duration of the bond. Compute the duration of a bond with a face value of $1,000, a maturity of 10 years and a yield to maturity of 7%. Compute the duration for coupon rates ranging from 2% to 12% (in increments of 1%). What happens to duration as the coupon rate increases?