10 Please use "Only" the "Duration" formula below to answer Questions 13 to Question 1601020304Duration=% Change in Bond PriceYield Change in %05060710809 14) If a bond's yield rise from 6% to 8% and its price falls 1.5%, calculate the duration1011121314 15) If a bond's yield decrease by 0.3% and its price increase by .5%, calculate its duration15116117118119120121 16) A bond is currently trading at $1,025 has a yield of 6.82% and has a duration of 6.25. If the yield rises to 7.5%, calculate the new price of the bond122123124New Bond Price =

Several questions appear on the screen based on the concept of duration. A formula has also been…

Please use "Only" the "Duration" formula below to answer Questions 13 to Question 16 Duration=- 14) If a bond's yield rise from 6% to 8% and its price falls 1.5%, calculate the duration 16 % Change in Bond Price Yield Change in % 415) If a bond's yield decrease by 0.3% and its price increase by .5%, calculate its duration 5 17 18 19 20 21 16) A bond is currently trading at $1,025 has a yield of 6.82% and has a duration of 6.25. If the yield rises to 7.5%, calculate the new price of the bond 22 23 New Bond Price = 24

Please use "Only" the "Duration" formula below to answer Questions 13 to Question 16 Duration=- 14) If a bond's yield rise from 6% to 8% and its price falls 1.5%, calculate the duration 16 % Change in Bond Price Yield Change in % 415) If a bond's yield decrease by 0.3% and its price increase by .5%, calculate its duration 5 17 18 19 20 21 16) A bond is currently trading at $1,025 has a yield of 6.82% and has a duration of 6.25. If the yield rises to 7.5%, calculate the new price of the bond 22 23 New Bond Price = 24

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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The following is a list of prices for zero-coupon bonds of various maturities. Maturity (years) 1 2 Price of Bond $ 930.00 902.97 3 4 829.62 772.99 Required: a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. Assume annual coupon payments. b. Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year. Assume annual coupon payments. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii) three years; (iv) four years. Assume annual coupon payments. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Maturity (Years) Price of Bond YTM 1 $ 930.00 % 2 $ 902.97 % 3 $ 829.62 % 4 $ 772.99 %
Consider the following bonds: Bond A B CD с Coupon Rate (annual payments) 0.0% 0.0% 4.3% 7.7% The percentage change in the price of bond A is |___%. (Round to one decimal place.) What is the percentage change in the price of each bond if its yield to maturity falls from 6.9% to 5.9%? The percentage change in the price of bond B is %. (Round to one decimal place.) Maturity (years) 15 The percentage change in the price of bond C is %. (Round to one decimal place.) The percentage change in the price of bond D is %. 21500
Please answer all 4 yield to maturity with explanations thx
f the interest rate increases from 2% to 4%, given the duration of the bond equals 1.5, the price of the bond will a. increase by 2.9412%. b. decrease by 2.8846%. c. increase by 0.02885%. d. decrease by 2.9412%.
Give only typing answer with explanation and conclusion
K Using the formula given below: F-P P if the market price of a $1,000-face-value discount bond changes from $925 to $950, the yield to maturity decreases by%. (Round your response to two decimal places.) Rbonds =
(PLEASE READ THIS DIRECTION)Rules for Bond Valuation Problem Solving:a. For the "PV FACTOR in computing the PV of the coupon and PV for the maturity value/ principal use until 8-9th decimal place" before multiplying the coupon payment or future value.Example: ___x 2.123456789 or 22.12345678b. For "COMPOUNDED RATES" include all decimals in the rate (do not round off).Example semi-annual: 13%/2 =0.065c. For the "VALUE OF THE BOND/ PRICE OF THE BOND" round off your answers and final answers into whole numbers.Example: 824.59= 825 1. A bond issued by Delta Corporation matures in 12 years. It has a 12.5 percent annual coupon rate and a face value of P10,000. The bond has a discount rate to maturity of 9.5 percent. What is the price of Omega's bond today?
* Assignment 3 i Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 248 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Price (%) 80.36 96.95 135.22 Complete this question by entering your answers in the tabs below. Required A Bond Coupon (%) 2 4 8 Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. YTM % % % Saved 22255 35445
Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par. Coupon interest rate Yield to maturity 10% 8% What is the price of the bond in relation to its par value? (Select the best answer below.) O A. The bond sells at a discount to par. OB. The bond sells at par. OC. The bond sells at a premium to par.
Give only typing answer with explanation and conclusion
BASIC (Questions 1-17) 1. Interpreting Bond Yields Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond now? The YTM? LO 2 LO 2 2. Interpreting Bond Yields Suppose vou buy a 7 percent counon 20-vear
1. Bond prices and yields (S3.1) A 10-year bond is issued with a face value of $1,000, paying interest of $60 a year. If interest rates increase shortly after the bond is issued, what happens to the bond's a. Coupon rate? b. Price? c. Yield to maturity?

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