Question: Exercise 1. (Do this problem by hand. Don't just put it in a program like Excel. I want to see your work.) Bond A is

Exercise 1. (Do this problem by hand. Don't just put it

Exercise 1. (Do this problem by hand. Don't just put it in a program like Excel. I want to see your work.) Bond A is a two year zero coupon bond with par value of $1000 and price of $950. Bond B is a three year 7% coupon bond with par value of $1000 and price of $1000. Compute the yield to maturity of each. Is the yield curve upward or downward sloping? Compute the implied forward rate. Compute the duration of each. Compute the convexity of each

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