esFind the duration of a 6.6% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield tomaturity of 6.6%. What is the duration if the yield to maturity is 9.0%?Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answers to 2 decimal places.6.6% YTM9% YTMDurationyearsyears

The objective of this question is to calculate the duration of a bond under two different yield to…

Answered: es Find the duration of a 6.6% coupon…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the value of the following bond: Principal: 10 000 $ Maturity: 3 years Annual interest rate: 4% Investors required rate of return: 2% Where the bond pays the principal at maturity, however, it pays interest twice a year. Please provide your answer rounded. If you get 507.823 write 508.
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es A bond with a coupon rate of 8 percent sells at a yield to maturity of 9 percent. If the bond matures in 10 years, what is the Macaulay duration of the bond? What is the modified duration Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Macaulay Modified Duration years years
еВook Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 9%. a. What is the yield to maturity at a current market price of 1. $822? Round your answer to two decimal places. % 2. $1,107? Round your answer to two decimal places. % b. Would you pay $822 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if ra = 13%? I. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. II. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. You would not buy the bond as long as the yield to maturity at this price is…
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Accounting 1. How to calculate the value of a 6 year 2% coupon bond with semiannual payments, 1000 par. Expected return is the risk free rate of 3%. Please use 5 decimal places in your response 2. You buy a 6 year bond with an annual 5% coupon at par value, $1000. If the yield to maturity at the end of the first year changes to 3% what is the end of the year value of the bond(after the coupon payment, remember: bond value does not include this coupon)? Please use 5 decimal places in your response
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Afive-yearbondhasa$10,000parvalueandpayssemi-annualcouponsof$1,000.The bond’s yield-to-maturity is 8%. 1.(a) How much would you be prepared to pay for the bond? 2.(b) What should the price of the bond be one year from now? 3.(c) If all happens as expected, what rate of return would an investor expect if they buy the bond today and sell it in one year?

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