1. You are considering buying $10,000 worth of bonds in Peridox Corporation. You have a choice of two bonds, both of which yield 8%. One bond has a 6% coupon and the other bond has a 10% coupon. Which bond do you want to buy if you want to minimize your interest rate risk? What is the PV of this bond if it pays its coupon annually? What is the NPV of this transaction? What is the difference between a bonds coupon and its yield? What is meant by a bonds duration and under what circumstances would a bonds duration equal its maturity? This is based off of a 5 year maturity.