Question: please solve this question 1. A zero coupon bond with 3 years to maturity has a annualized yield to maturity of 4%. 3-year maturity annual-pay

please solve this question

please solve this question 1. A zero coupon bond with 3 years

1. A zero coupon bond with 3 years to maturity has a annualized yield to maturity of 4%. 3-year maturity annual-pay coupon bond has as face value of $1000 and a 4% coupon rate. The coupon bond also has a yield to maturity of 4%. (a) Please calculate the duration of each bond. Which bond has the higher duration and why? (b) Using the formula that approximates bond price change as a function of the duration, please calculate the approximate price change of both bonds if yields drop from 4% to 3.5%

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