Use the Following Information for Questions

Multiple Choice

Use the following information for questions
There are two riskless bonds which mature at t = 2.The first is a zero coupon bond that pays a balloon of $ 1,200.The other is a coupon bond with an annual coupon of $100 and a balloon payment of $990.The current yield on a riskless bond that mature in one year is 10%, the annualized yield on a two-year bond is also 10%.
-What is the duration of each bond Answer: zero coupon, coupon) ?

A) 1 year, 1.512 years
B) 1.512 years, 2 years
C) 1.512 years, 1.908 years
D) 2 years, 1.908 years
E) 2 years, 1.512 years