(Answered) An eight-year bond has a yield of 10 and a duration of

Finance

Question 1. A(n) eight-year bond has a yield of 10% and a duration of 7.208 years. If the bond's yield changes by 50 basis points, what is the percentage change in the bond's price?

Question 2. You buy a(n) nine-year bond that has a 6.25% current yield and a 6.25% coupon (paid annually). In one year, promised yields to maturity have risen to 7.25%. What is your holding-period return?

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