Find the duration of a 5.2% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 6.0%. What is the duration if the yield to maturity is 7.0% ? Note: The face value of the bond is $100. (Do not round intermediate calculations. Round your answers to 4 decimal places.) 6% YTM 7% YTM Years Years

Find the duration of a 5.2% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 6.0%. What is the duration if the yield to maturity is 7.0% ? Note: The face value of the bond is $100. (Do not round intermediate calculations. Round your answers to 4 decimal places.) 6% YTM 7% YTM 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

Section: Chapter Questions

Problem 1PS

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Bond Principal ($) Time to Maturity (yrs) 100 0.5 100 1.0 100 1.5 100 2.0 *Half the stated coupon is paid every six months Annual Coupon ($)* 0.0 0.0 6.2 8.0 Bond Price ($) 98 95 101 100 Calculate the 2-year par yield. Enter your answer rounded to four decimal places, skip the % sign. For example, if your calculation results in 0.1234567 %, you only need to enter 0.1235.
A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond matures in 12 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. X Answer is complete but not entirely correct. Macaulay Modified Duration 9.128 X years 8.648 years
3 An 8%, 8-year bond pays annual coupons and has 6 years to maturity. If the market interest rate is 9%, calculate the price of this bond. Show the (abbreviated) time line, the key entries/steps of FCS, and the (abbreviated) equation/expression of NS. ation Typing tips:
Find the total return earned by the bond with the characteristics shown in the table. Face Value $14,000 Annual Interest Rate 6.09% Term to Maturity 4 months What is the total return earned by this bond? $ (Round to the nearest cent as needed.)
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
Accounting Consider a bond with semiannual coupon payments of $50 and a principal payment of $1,000 in 10 years. Assume a flat yield curve with an 7% vied to maturity: If the yield curve remains unchanged, what is the bond's duration in 9 years? A. 1.00 year B. 1.014 year C. 0.995 year D. 0.983 year E. 0.977 year For a 8-year discount bond with a face value of $1.000. if the interest rate changes from 8% to 12%, what's the new price of the bond using Duration with Convexity? A. $404.87 B. 405.87 C. 406.87 D. 407.87 E. 408.87
Give typing answer with explanation and conclusion A bond pays coupon rate of 5% with interest paid semi-annually. The price of the bond is $940 and the yield to maturity is 6.5%. The face value is $1,000. Estimate the number of years to maturity?
es Find the duration of a 6.6% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity 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% YTM 9% YTM Duration years years
2
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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