Problem 8. Some Questions on Duration. (Just answer with a name or short phrase!) a. Betty owns a 6% per annum (coupon rate) coupon bond and Bob owns a 7% per annum (coupon rate) coupon bond. All other things being equal whose bond has the greater Macaulay duration? b. Bela owns a 7-year (term) bond and Boris owns an 8 -year (term) bond. All other things being equal whose bond has the lesser Macaulay duration? c. Art owns a bond whose Macaulay duration is 10 years and Bertha owns a bond whose Macaulay duration is 12 years. Both bonds have the same yield to maturity. For a given change in the magnitude (absolute value) of interest rates whose bond's magnitude (absolute value) of percentage price change would be greater? d. Consider the graph of price versus yield for a bond. As price increases does the magnitude of dollar duration increase or decrease?! Alex owns a bond whose Macaulay duration is 3 years and Elinor owns a bond whose Macaulay duration is 10 years. As interest rates decrease whose bond should do better? e. Problem 8. Some Questions on Duration. (Just answer with a name or short phrase!) a. Betty owns a 6% per annum (coupon rate) coupon bond and Bob owns a 7% per annum (coupon rate) coupon bond. All other things being equal whose bond has the greater Macaulay duration? b. Bela owns a 7-year (term) bond and Boris owns an 8 -year (term) bond. All other things being equal whose bond has the lesser Macaulay duration? c. Art owns a bond whose Macaulay duration is 10 years and Bertha owns a bond whose Macaulay duration is 12 years. Both bonds have the same yield to maturity. For a given change in the magnitude (absolute value) of interest rates whose bond's magnitude (absolute value) of percentage price change would be greater? d. Consider the graph of price versus yield for a bond. As price increases does the magnitude of dollar duration increase or decrease?! Alex owns a bond whose Macaulay duration is 3 years and Elinor owns a bond whose Macaulay duration is 10 years. As interest rates decrease whose bond should do better? e