Problems/Short Answer (Points as noted) 1. Use the table below for the questions that follow. Bond Duration A Coupon Rate 6 % Zero coupon Y ield 4.5% 6.25% Maturity 3 years 7 years B (a) Compute the duration of each bond, assuming annual interest payments for the coupon bonds. Show your work below. (4 points) (b) What is the duration predicted price change for each bond for a 1% increase in rates? Show your work below. (6 points) cash flows 2.5% CO ligo loco 126 1180