9. An investor purchases 5 zero-coupon bonds, with years. Each bond has a maturity value of 1,000, and is priced based on the following yield curve: Term (yrs.) Spot rate 1 2.4% 2 3.0% 3 3.4% 4 3.7% 5 3.9% What is the modified duration of the investor's portfolio?
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- ← Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,034.51. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.7% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)Consider a bond that has a price of $1046.76, a coupon rate of 8.8%, a yield to maturity of 8.1%, a face value of $1000, and 10 years to maturity. What is the current yield? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below. Enter your answer to 2 DECIMAL PLACES. Number %Suppose a bond with a 12% coupon rate and semiannual coupons, has a face value of $1,000, 10 years to maturity and is selling for $1,197.93. Calculate: A. Current yield, and B. YTM if the price of the bond in one year is $2,014.83 STEPS MAY INCLUDE USE OF FINANCIAL CALCULATOR (BA 2 PLUS)
- Consider 3-year 6% bond with the par of $100 and semi- annual coupon payments. The YTM of the bond is 8%. Also, suppose that the dollar duration is 253.96. What would be the bond price if the yield were 9%? What would be the price change due to duration? What would be the price change due to convexity? Price = 97.26; Change due to Duration = +2.54; Change due to Convexity = -0.04 Price = 96.84; Change due to Duration = +2.12 ; Change due to Convexity = -0.04 Price = 92.26; Change due to Duration = -2.54; Change due to Convexity = +0.04 Price = 92.68; Change due to Duration = -2.12 ; Change due to Convexity = +0.04NikulSuppose you are reviewing a sheet for a bond portfolio and see the following information. These bonds have a par value of 100 and make semiannual coupon payments. Bond Annual coupon rate Number of years Annual yield to maturity A B с 6% 8% 10% 2 3 5 5% 10% 8% What is the bond portfolio's yield to maturity based on the IRR calculation?
- Suppose a 10-year, $1,000 bond with a coupon rate of 8.5% and semiannual coupons is trading for $1,034.27. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is %. (Round to two decimal places.)Suppose a ten-year, $1,000 bond with a 8.9% coupon rate and semiannual coupons is trading for$1,035.32. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.4% APR, what will be the bond's price? The bond's yield to maturity is ______%. (Round to two decimal places.)Suppose a 10-year, $1,000 bond with an 8.6% coupon rate and semi-annual coupons is trading for a price of $1,035.22. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.3% APR, what will the bond's price be? **** a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)
- R1. Consider the following bond that pays coupon interest semi-annually. Coupon Yield to maturity Maturity (Years) Par Value Bond 8% 6% 2 $100 a) What is the price value of a basis point? Assuming one basis point decrease. b) Compute the Macaulay duration theoretically. What is the modified duration? c) Compute the approximate duration by increasing yield by 20 basis points and compare your answers with those calculated in part (b). d) Compute the convexity measure theoretically. e) When the yield increases by 20 basis points, what is the new bond price? What is the estimated bond price using duration calculated in part (b)? What is the estimated bond price using duration calculated in part (b) together with the convexity calculated in part (d)?Data table 不 The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of face value): a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping, downward sloping, or flat? a. Compute the yield to maturity for each bond. The yield on the 1-year bond is ☐ %. (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Maturity (years) Price (per $100 face value) 1 $95.42 2 3 4 5 $90.99 $86.47 $81.58 $76.46 Print Done