Bond I II III IV Type Zero Zero Coupon Zero Face value 1,000 1,000 1,000 1,000 Coupon rate 0 0 4 0 Maturity 1 2 3 1 Price 960 920 990 Issue date Today Today Today At the end of 1st year YTM Duration Flag question Question 20 Question 201 pts What is the duration of a 2 year zero coupon bond Group of answer choices 0 5 1 1 5 2 Flag question Question 21 Question 211 pts What is the approximate duration of a 3 year 4 annual coupon bond priced at $990 today Group of answer choices 2 74 2 89 2 94 3 Flag question Question 22 Question 221 pts What is the price of a 1 year zero coupon bond to be issued at the end of year 1 Group of answer choices 937 23 952 13 958 33 961 37

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Question: Bond I II III IV Type Zero Zero Coupon Zero Face value 1,000 1,000 1,000 1,000 Coupon rate 0% 0% 4% 0% Maturity 1 2

Bond	I	II	III	IV
Type	Zero	Zero	Coupon	Zero
Face value	1,000	1,000	1,000	1,000
Coupon rate	0%	0%	4%	0%
Maturity	1	2	3	1
Price	960	920	990	?
Issue date	Today	Today	Today	At the end of 1st year
YTM
Duration		?	?

Flag question: Question 20

Question 201 pts

What is the duration of a 2-year zero-coupon bond?

Group of answer choices

0.5

1.5

Flag question: Question 21

Question 211 pts

What is the approximate duration of a 3-year 4% annual coupon bond priced at $990 today?

Group of answer choices

2.74

2.89

2.94

Flag question: Question 22

Question 221 pts

What is the price of a 1-year zero-coupon bond to be issued at the end of year 1?

Group of answer choices

937.23

952.13

958.33

961.37

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