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Consider two semi - annual coupon bonds with the following properties: Bond Maturity Face Value Coupon B 1 3 years 1 0 0 1 2

Consider two semi-annual coupon bonds with the following properties:
Bond Maturity Face Value Coupon
B13 years 10012%
B23.5 years 10030.3525%
The current yield for both bonds is 10%.The current yield for both bonds is 10%.
(i) Compute the durations of the two bonds, and verify that they are equal.
(ii) By computing the prices (B1 and B2), determine the value of n that makes nB1=B2.
(i) Compute the durations of the two bonds, and verify that they are equal.
(ii) By computing the prices (B1 and B2), determine the value of n that makes nB1= B2.
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