Question: b) (5 points) Now consider the same bond with 10 year maturity, a face value or $1,000, a coupon rate of 7% (coupon is paid

b) (5 points) Now consider the same bond with 10 year maturity, a face value or $1,000, a coupon rate of 7% (coupon is paid annually) and assume that the yield to maturity on the bond is 7%. Compute the duration of this bond.

(Here is the information from the previous point which will help you understand to what bond we are refering: First, consider a 10 year bond with a coupon rate of 7% and annual coupon payments)

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