we are now in 31/12/2005 and you have information on some government bods. their face value is 100 and they all pay coupons on December 31st of each year. (they already paid the coupon this year).

Bond maturity coupon rate

A 31/12/2006 15%

B 31/12/2008 8%

C 31/12/2010 9%

D 31/12/2010 6%

You know the following spot rates: r₀₁=6.5%, r₀₂=6.6%, r₀₃=6.7%, r₀₄=6.8% e r₀₅= 7%

1. VALUE THE BONDS
2. COMPUTE THE YIELD TO MATURITY OF THE BONDS A, B e C.
3. COMPUTE THE DURATION OF THE BONDS B, C e D