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[A] Compute the duration of a bond which matures in five years, has a face value of $1,000 & a coupon rate of 8%, when the interest rate on comparable assets is 3 percent.
[B] Compute the duration on a bond with all of the same attributes as the bond in part [A] except that it has a face value of $100. Based on your computation, what can you conclude about the relationship between face value & duration?
[C] Consider 2 bonds, one with duration of three and the other with duration of five. If interest rates on comparable assets rise, estimate the bonds would you rather be holding? describe your answer.

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