1. You are currently invested in a bunch of five-year, zero-coupon, US government bonds that have an annual yield of 6%. Your investment advisor suggests you should switch to 15% coupon, $1,000 face value six-year bonds that also have a yield of 6%. Considering their risk (as measured by duration) and return, is she correct?
2. What is the semiannual coupon payment on a bond that is selling at $920? The bond matures in 20 years, its yield to maturity is 10%.