Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 4 8 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Price (%) 80.78 97.43 134.62 Complete this question by entering your answers in the tabs below. Required A Bond Coupon (%) 2 4 8 Required B What is the duration of each bond? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Duration years years years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100.
Bond Coupon
(%)
2
4
8
a. What is the yield to maturity of each bond?
b. What is the duration of each bond?
Complete this question by entering your answers in the tabs below.
Required A Required B
Price (%)
80.78
97.43
134.62
What is the duration of each bond?
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Bond Coupon
(%)
2
+ co
4
8
Duration
years
years
years
Transcribed Image Text:Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 4 8 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B Price (%) 80.78 97.43 134.62 What is the duration of each bond? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Bond Coupon (%) 2 + co 4 8 Duration years years years
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