In: Finance
a. What is the duration of a two-year bond that
pays an annual coupon of 11.3 percent and has a current yield to
maturity of 13.3 percent? Use $1,000 as the face value. (Do
not round intermediate calculations. Round your answer to 4 decimal
places. (e.g., 32.1616))
b. What is the duration of a two-year zero-coupon
bond that is yielding 11.5 percent? Use $1,000 as the face
value.