1. Kenny is considering creating a revocable grantor trust. Which of the following is not a feature of a revocable grantor trust?
A) Creation is intervivos.
B) Results in the assets being excluded from probate.
C) Results in the exclusion of assets in the gross estate.
D) Survives incapacity and death of the grantor.
2. Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.8%. What is the duration if the yield to maturity is 11.8%? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
YTM Duration
7.8% YTM ?
11.8% YTM ?