This first table describes prevailing market interest rates. Market Data Yield0.05 Required: Using the yield above and the information contained in the table below, please calculate the price and duration of the bond as well as all necessary steps. (Use cells A5 to B5 from the given information to complete this question.) Time Until PaymentPaymentDiscounted PaymentWeight Time × Weight 1.00$30.00 2.00$30.00 3.00$30.00 4.00$1,030.00 Price: Duration

Yield to maturity is 5% Time period is 4 years Par Value is $1000 Annual coupon amount is $30 To…

Answered: his first table describes prevailing…

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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This first table describes prevailing market interest rates.

Market Data
Yield	0.05

Required:
Using the yield above and the information contained in the table below, please calculate the price and duration of the bond as well as all necessary steps.

(Use cells A5 to B5 from the given information to complete this question.)

Time Until Payment	Payment	Discounted Payment	Weight	Time × Weight
1.00	$30.00
2.00	$30.00
3.00	$30.00
4.00	$1,030.00
Price:
Duration