CCP has determined that it needs to raise more capital to fund liabilities incurred due to the pause in residential mortgage repayments during the Coronavirus epidemic. Its Chief Financial Officer (CFO) suggests issuing unsecured debt, and is considering the following two options answer each question regarding the options:

1. A six year Zero-Coupon bond with a face-value of $100. The CFO believes that the bond can be sold for $795. What is the implied discount rate on the zero-coupon bond?
2. A five year 3.5% coupon bond which would issue at par value. Face Value = $100. Which bond do you think should be preferred? What things should be taken into consideration?
3. Calculate the duration of each of the bonds