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the following are three 15-year bonds. The three semiannual coupon rates are 0%, 3.5%, and 7%. Which coupon rate belongs to which bond? What is
the following are three 15-year bonds. The three semiannual coupon rates are 0%, 3.5%, and 7%. Which coupon rate belongs to which bond? What is the shape (increasing, decreasing, or flat) of the term structure of spot rates underlying the valuation of these bonds?
\begin{tabular}{|c|c|c|c|c|} \hline Bond & Yield & DV01 & Modified Duration & Coupon Rate? \\ \hline#1 & 3.50% & .1159 & 11.59 & \\ \hline#2 & 3.50% & .0876 & 14.74 & \\ \hline#3 & 3.50% & .1443 & 10.26 & \\ \hline \end{tabular}
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