Question

They did not give any information about it they just ask duration with those information

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Answer 1

Solution is being provided asssuming a face value of 1,000.

CF for Year 1,2,3=Face avlue*3%=30

CF for year 4=Redemption value+coupon=1000+30=1030

Discount factor=1/(1+YTM)n where n is number of year.

Price=Sum total of PV column=929.07

Duration=3.82 years (as shown in table below).

Year	CF	Discount factor	PV	PV/Price	(PV/Price)*T
1	30	0.9523	28.57	0.03075	0.03075
2	30	0.9070	27.21	0.02929	0.05858
3	30	0.8638	25.91	0.02789	0.08366
4	1030	0.8227	847.38	0.9121	3.6483
	TOTAL		929.07		3.8212