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Q5 A and B are two 20-year bonds. A has a coupon of 4% and...

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Accounting

Q5 A and B are two 20-year bonds. A has a coupon of 4% and B has a coupon of 8%. Assuming that both are trading at the same yield, what can be said about the duration of these bonds?
Q6(a) Calculate the bid-ask spread for the below direct quotes:
\table[[,Bid,Ask],[US$/,1.4791,1.4794]]
(b) Identify which currency is the home currency and which is the foreign currency.
(c) What is the difference in meaning between the bid rate and the ask rate [from the viewpoint of a customer, not a broker dealer]? Calculate the indirect quote for the bid rate and the ask rate.
(d) Give an explanation using simple language for what the bid direct quote means.
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