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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume...

Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100.

Bond Coupon (%) Price (%)

3 87.50

5 106.50

9 137.50

a. What is the yield to maturity of each bond? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b. What is the duration of each bond? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 1 year ago
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