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Business, 08.04.2021 02:40 ooof3

Corporate finance) 1. Assume there are four risk-free bonds with the following characteristics, where coupons are paid out once per year: Bond/ Current Price/ Time to Maturity/ Coupon rate/

A/ $925.93/ 1/ 0/

B/ $969.51/ 2/ 10/

C/ $746.91/ 3/ 3/

D/ $779.64/ 4/ 7/

1.1. Plot the term structure of interest1.

1.2. Assume there is also a 4 year bond with coupon rate of 9%. What should be its market price?

1.4. Compute the duration of the bond described in part (1.2)

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