1. A semi-annual bond has a duration of 5 years, a yield to maturity of 4.2 percent, a coupon rate of 3 percent. What is

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1. A semi-annual bond has a duration of 5 years, a yield to
maturity of 4.2 percent, a coupon rate of 3 percent. What is the
bond's modified duration?
a. 4.90 years
b. 4.85 years
c. 4.80 years
d. 4.93 years
2. A bond has a yield to maturity of 7.2 percent and a modified
duration of 7.8. If the yield to maturity instantly decreased to
7.0 percent, the bond's price would change by _____.
-3.08
0.67
-1.51
1.56
3.
Which one of the following is true for U.S. Treasury bonds?
a. They pay coupon payment semiannually.
b. They mature between 1 to 10 years.
c. They issue no coupon payments to investors.
d. The minimum face value is $100,000.