Consider two bonds: Bond A with the percentage coupon rate equal to 6 and Bond B that pays no coupon (a zero-coupon bond). Bothh bonds have three years remaining until maturity and their yeiled to maturity is 10% Use the following table to compute bond duration.

Column D: Insert Future Cash Flow values for both bonds based on future coupon and principal payments.

Column E: Compute the present value of future cash flows for both bonds. Use the discount rate of 10% (yield to maturity).

Cloumn F: Compute the weight of each present value of future cash flow relative to the sum of all discounted cash flows.

Column G: Multiply the time until payment (in years) by the computed weight for each payment.

1) Compute and report the duration for both bonds

Future Cash Flow Cash Flow Discounted at 10% Column (B) Column (E) Weight Time until Payment (Years) 1 2 3 Bond A w N Sum: 0.000 0.0000 0.0000 Bond B 1 2 3 Sum: 0.000 0.0000 0.0000