Assume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100. a. What is the yield to maturity of each bond? Bond coupon        YTM 6%                            ?   % 8%                             ?   % 10%                           ?   %   b. what is the duration of each bond? Bond coupon        Duration 6%                            ?          years 8%                             ?          years 10%                           ?           years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100.

a. What is the yield to maturity of each bond?

Bond coupon        YTM

6%                            ?   %

8%                             ?   %

10%                           ?   %

 

b. what is the duration of each bond?

Bond coupon        Duration

6%                            ?          years

8%                             ?          years

10%                           ?           years

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