The duration of bonds two years in the future

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Reference no: EM132072324

1. Two bonds are available for purchase in the financial markets. The first bond is a 5 year, $1000 bond that pays an annual coupon of 10%. The second bond is a 5 year, $1000 zero coupon bond.

What is the duration of these bonds two years in the future, if the YTM remains at 8%?

2. During the 1999’s The Financia Services Modernization Act of 1999 was enacted. What did this law do? What were some of the consequences for the US banking system?

Reference no: EM132072324

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