Problem 1: Here are the prices of three bonds with 10-year maturities:
|
Bond Coupon (%)
|
Price (%)
|
|
2
|
81.62
|
|
4
|
98.39
|
|
8
|
133.42
|
1. If coupons are paid annually, which bond offered the highest yield to maturity?
2. Which had the lowest?
3. Which bonds had the longest and shortest durations?