Question 1:

Calculate the durations and volatilities of securities A, B, and C. Their cash flows are shown below. The interest rate is 9%. (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Volatility" to 2 decimal places.)

Period 1	Period 2	Period3	Duration	Volatility
A. 120	120	200	years
B. 100	100	280	years
C. 90	90	270	years

Question 2:

Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100.

Bond Coupon (%)	Price (%)
3	89.00
5	108.00
10	139.00

a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

Bond Coupon (%) YTM

3 %

5 %

10 %

b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Bond Coupon (%) Duration

3 years

5 years

10 years