They both semiannually. Portfolio A consists of $$1000$ par, zero$-$coupon bonds that mature in $6,9,$ and $12$ years. Portfolio B

consists of $$1000$ par, $9\%$ coupon bonds that mature in $14,15,$ and $16$ years.

a$.$ Based on this information, which portfolio is riskier, and why?

b$.$ If the market's required rate of return is $10\%,$ what is the price and duration of each bond?

c$.$ What is the average duration of each portfolio based on each bond's duration? How does this

information affect your answer in part $($a$)?$

d$.$ What is the percentage loss for each portfolio if the market's required rate of return increases to

$12\%?$

e$.$ What does your answer to part $($d$)$ tell you about the relationship between duration and risk?