Longest and shortest durations

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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?

Reference no: EM13842561

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