1.b  A 30-year Canada bond is issued with par value of $1,000, paying interest of $60 per year. If market yields increase shortly after the bond is issued, what happens to the following bond's  d. Current yield   Options:  will increase  will decrease  will not chnage

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A: Given: PV = 1080 duration = 9  YTM = 8%

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A: Coupon rate = 10%No. of years = 9Yield to maturity = 9%

Q: What is the market price of a zero-coupon bond (that is, a bond that will not pay any coupon…

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A: Here, To Find: Yield to Maturity (YTM) =?

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A:

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A: Price of bond can be found out by present value of coupon payment plus present value of par value.

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Q: Provide table solutions

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Q: What are the Modified Duration and Macaulay Duration of the following bond? Coupon Rate = 8%…

A: Duration of bond shows the weighted period required to recover all cash flows from the bond. It is…

Q: Given the following information about a bond, calculate the modified duration of the bond. i) The…

A: Modified duration= Macaulay Duration /(1+YTM) Maculay Duration = Sum of [(( PV / sum of PV) *time ].

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