1.       There is a two-year bond that pays an annual coupon of 10% and whose current yield to maturity is 14%，what are the duration and convexity? Use $1,000 as the face value.
　　A.        1.637 years and 3.3491
　　B.        1.732 years and 4.0283
　　C.        1.892 years and 4.2276
　　D.        1.906 years and 4.3278
　　Answer: D
　　The duration is 1.906 years, as shown in the table. Therefore the correct answer has to be D; you don';t need to compute the convexity.