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Rank the following bonds by decreasing price volatility (duration). Term Bond 1 2 3 4 Coupon 0% 4% 0% 5% 10 years 9 years 12

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Rank the following bonds by decreasing price volatility (duration). Term Bond 1 2 3 4 Coupon 0% 4% 0% 5% 10 years 9 years 12 years 9 years Yield to maturity 5.3% 4.8% 4.8% 5.0% 1) 2, 4, 3, 1 2) 4, 2, 1, 3 3) 3, 1, 2,4 4) 4, 3, 1,2 5) 2, 3, 4,1

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