You buy a 2-year, 10% coupon bond. The principal is $1,500. The spot rates are 2% and 6%. Compute the duration.

You know the yield to maturity is 10% for a two year 5% coupon bond with principal $1,000. The spot rates are 7% and 12%. Show what the new price of the bond is if the yield increases by 1%.

You have a 1-year zero coupon bond with a principal of $1,500 and a 2-year 5% coupon bond with a principal of $2,000. The prices are $1,450 for the zero coupon bond and $2,001.429 for the coupon bond. Compute the term-structure of interest rates