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Question 4: A limited issued a bond having a face value of $120000, carrying an...

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Question 4: A limited issued a bond having a face value of $120000, carrying an annual coupon rate of 5%, Bond maturing in 3 years. Prevailing market rate of interest is 11%. Similarly bonus limited issued a 3 year bond with face value of $210000 and a coupon value of 21000. Calculate the duration of both the bonds? Choose an answer A: Duration of A limited Bond is 9.66 and Bonus limited bond is 8.68 B: Duration of A limited Bond is 2.85 and Bonus limited bond is 2.73 C: Duration of A limited Bond is 2.85 and Bonus limited bond is 9.66 D: Duration of A limited Bond is 8.68 and Bonus limited bond is 2.73

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