Compute the price (value) and the duration of each of the following fixed-income claims. a. A zero-coupon bond with 9 years left until maturity and a YTM of 4.25%. b. A 4-year, 4.5% coupon bond with a YTM of 4.0%. c. A perpetuity with an annual cash flow of $100,000 and a YTM of 8.0%.

Assume that all bonds pay annual coupons and have par values of $1,000. Assume that P/E ratios are computed using current price and expected earnings (rather than current earnings), and that all earnings and dividend values are annual values.

NO EXCEL