Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) Price (%) 2 81.55 4 98.31 8 133.52 a. What is the yield to maturity of each bond? b. What is the duration of each bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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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.

Bond Coupon (%) Price (%)
2 81.55
4 98.31
8 133.52


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

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