PLS DO FAST.. I WILL RATE FOR SURE A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 2.3%. Time to maturity is 5 years and the current yield to maturity is 5.6%. What percentage of this bond's value comes from coupon payments? A) 11.6% B.) 24.0% C.) 27.7% D.) 20.8% E.) 17.2%

PLS DO FAST.. I WILL RATE FOR SURE A semi-annual coupon bond has a face value of $1,000 and a coupon rate of 2.3%. Time to maturity is 5 years and the current yield to maturity is 5.6%. What percentage of this bond's value comes from coupon payments? A) 11.6% B.) 24.0% C.) 27.7% D.) 20.8% E.) 17.2%

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 7DTM

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Question 1 : Consider a coupon bond with an 8% annual coupon rate, a 10% interest rate, and a $1000 face value. The bond will mature in 4 years. What is the duration of this bond? Duration is defined as a weighted average of the maturities of the cash payments. Suppose the weight assigned to the maturity of 1 year is W. Show your work. No work, no credit A: Duration 2.28 and W=7.77% B: Duration=3.56 and W-20.5% C. Duration 3.56 and W-23.1% D. Duration=3,56 and W-7.77%
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Consider a coupon bond with an 8% annual coupon rate, a 10% interest rate, and a$1000 face value. The bond will mature in 4 years. What is the duration of this bond? Duration isdefined as a weighted average of the maturities of the cash payments. Suppose the weightassigned to the maturity of 1 year is W. Show your work A: Duration=2.28 and W=7.77%B: Duration=3.56 and W=20.5%C. Duration=3.56 and W=23.1%D. Duration=3.56 and W=7.77%