vii) Briefly explain the usefulness of each duration measure. 

viii) Briefly explain if each bond is trading at either a discount, par or premium and why.

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Bond X is a 4% coupon (paid semi-annually), 3-year bond with a face value of $100. Bond Y is a 6% coupon (paid semi-annually), 3-year bond with a face value of S100. Bond Z is a 8% coupon (paid semi-annually), 4-years to maturity and a face value of S100 per contract. The yield curve is flat at 7% per annum. i) Compute the current price of bond X. ii) Compute the new price of bond X if the yield curve falls to 5% and if the yield curve jumps to 9%. iii) Compute the current price of bond Y. iv) Compute the new price of bond Y if the yield curve falls to 6%. What is the percentage price change? v) Compute bond Z's Macaulay Duration. vi) Compute bond Z's Modified Dollar Duration. Bond X is a 4% coupon (paid semi-annually), 3-year bond with a face value of $100. Bond Y is a 6% coupon (paid semi-annually), 3-year bond with a face value of S100. Bond Z is a 8% coupon (paid semi-annually), 4-years to maturity and a face value of S100 per contract. The yield curve is flat at 7% per annum. i) Compute the current price of bond X. ii) Compute the new price of bond X if the yield curve falls to 5% and if the yield curve jumps to 9%. iii) Compute the current price of bond Y. iv) Compute the new price of bond Y if the yield curve falls to 6%. What is the percentage price change? v) Compute bond Z's Macaulay Duration. vi) Compute bond Z's Modified Dollar Duration.