You own 4 bonds, each with a face value of $1000. These are namely, a 5...

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You own 4 bonds, each with a face value of $1000. These are namely, a 5 year zero coupon bond, a 4 year zero coupon bond, a 4 year bond with a 5% p.a. annual coupon and finally a 5 year bond with a 5% p.a. semi-annual coupon. Current market yield is 6% p.a. 5 year zero coupon bond 4 year zero coupon bond 4 year bond with a 5% p.a. annual coupon 5 year bond with a 5% p.a. semi-annual coupon The following calculations have been done for you: PV of bond 4 year bond with 5% p.a. annual coupon 5 year bond with 5% p.a. semi-annual 957.35 coupon O 965.35 Which bond is affected most by a 1% increase in the market rate? 4 year zero coupon bond. 5 year zero coupon bond. 5 year bond with a 5% semi-annual coupon. 4 year bond with a 5% annual coupon. Sum of Time-Weighted PV of cash flows 3588.91 4279.35 You own 4 bonds, each with a face value of $1000. These are namely, a 5 year zero coupon bond, a 4 year zero coupon bond, a 4 year bond with a 5% p.a. annual coupon and finally a 5 year bond with a 5% p.a. semi-annual coupon. Current market yield is 6% p.a. 5 year zero coupon bond 4 year zero coupon bond 4 year bond with a 5% p.a. annual coupon 5 year bond with a 5% p.a. semi-annual coupon The following calculations have been done for you: PV of bond 4 year bond with 5% p.a. annual coupon 5 year bond with 5% p.a. semi-annual 957.35 coupon O 965.35 Which bond is affected most by a 1% increase in the market rate? 4 year zero coupon bond. 5 year zero coupon bond. 5 year bond with a 5% semi-annual coupon. 4 year bond with a 5% annual coupon. Sum of Time-Weighted PV of cash flows 3588.91 4279.35

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