You have the investment choice of a year security or a 2 year security. The one year security pays 3 interest and the 2 year security pays Interest. In order for you to invest in the year security, you must believe that interest rates in one year from now are at least_fora 1 year security. Ctenore compounding and assume annual rates) O 1.6.5 O 2.2 3.5 A bond has an eight year maturity and pays 8annual coupons every even year. In other words, it pays coupons in years 2, 4, 6, and if the yield to maturity, the duration of the bond is not discernible since I do not know the face value for the bond 07.02 06:21 5.34 A bond costs 51000 with a yield of 7.84. The price of the band increases to $1035 when the yield falls by 25 basis points. Alternatively, the price of the bond falls to 5981 when the yield increases by 35 basis points. The effective duration of the bond is calculated as 01.10.80 02.3.17 3.524 0 4.9 3