One matures in 1 year paying 100 and its price is 5693 the


Suppose you invest in zero coupon bonds. One matures in 1 year, paying $100, and its price is $56.93. The other matures in 2 years, paying $1100, and its price is $943.07.

(a) Compute the yield-to-maturity on each bond.

(b) Compute the duration for each bond.

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Financial Management: One matures in 1 year paying 100 and its price is 5693 the
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