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Consider two semi-annual coupon bonds with a face value of 100 and current yield of 10% with the following properties: Bond Maturity Coupon B 1

Consider two semi-annual coupon bonds with a face value of 100 and current yield of 10% with the following properties:

Bond Maturity Coupon
B1 3 years 12%
B2 3.5 years 30.3524%

(i) Compute the durations and convexities of the two bonds

(ii) By computing the prices, determine the number of B1 that has the same value as 1 unit of B2

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