Required:a. Find the duration of a 6% coupon bond making annual coupon payments if it has three years untilmaturity and a yield to maturity of 6.5%. (Do not round intermediate calculations. Round your answers to4 decimal places.)b. What is the duration if the yield to maturity is 10.5% ? (Do not round intermediate calculations. Roundyour answers to 4 decimal places.)YTMĐỘ BI XEM510 BA YEMDuration2.8333 Years24180 Years

A bond is a kind of debt security issued by the government and private companies to raise funds from…

Required: a. Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.5%. (Do not round intermediate calculations. Round your answers t 4 decimal places.) b. What is the duration if the yield to maturity is 10.5 % ? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Required: a. Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.5%. (Do not round intermediate calculations. Round your answers t 4 decimal places.) b. What is the duration if the yield to maturity is 10.5 % ? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

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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, a. Find the duration of a 7% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.6%. (Do not round intermediate calculations. Round your answers to 4 decimal places.) b. What is the duration if the yield to maturity is 11.6%? (Do not round intermediate calculations. Round your answers to 4 decimal places.) 7.6% YTM __ Years 11.6% YTM __ Years
ces You find a bond with 25 years until maturity that has a coupon rate of 8 percent and a yield to maturity of 9 percent. What is the Macaulay duration? The modified duration? Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Macaulay Modified Duration years years
Compute the Macaulay duration under the following conditions: a. A bond with a four-year term to maturity, a 10% coupon (annual payments), and a market yield of 8%. Do not round intermediate calculations. Round your answer to two decimal places. Assume $1,000 par value. _________ years b. A bond with a four-year term to maturity, a 10% coupon (annual payments), and a market yield of 12%. Do not round intermediate calculations. Round your answer to two decimal places. Assume $1,000 par value. _________ years c. Compare your answers to Parts a and b, and discuss the implications of this for classical immunization. As a market yield increases, the Macaulay duration -(Select:declines/increases) . If the duration of the portfolio from Part a is equal to the desired investment horizon the portfolio from Part b is -(Select: no longer/still) perfectly immunized. Only typed answer
A bond has 10 years until maturity, a coupon rate of 8.1%, and sells for $1,190. Interest is paid annually. (Assume a face value of $1,000.) a. If the bond has a yield to maturity of 9.9% 1 year from now, what will its price be at that time? Note: Do not round intermediate calculations. Round your answer to nearest whole number. Price b. What will be the rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign. Rate of return % c. If the inflation rate during the year is 3%, what is the real rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign. Real rate of return %
Required: a. Find the duration of a 3% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.1% (Do not round intermediate calculations. Round your answers to 4 decimal places.) b. What is the duration if the yield to maturity is 101% ? (Do not round intermediate calculations. Round your answers to 4 decimal places.) YTM a 61% YTM b. 10.1% YTM Duration Years Years
None
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
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You find a bond with 27 years until maturity that has a coupon rate of 9 percent and a yield to maturity of 10 percent. What is the Macaulay duration? The modified duration? Note: Do not round intermediate calculations. Round your answers to 3 decimal places.
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
A bond with a coupon rate of 8 percent sells at a yield to maturity of 7 percent. If the bond matures in 10 years, what is the Macaulay duration? Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Calculate the yield on the following bonds: A. Cost $1,000, semiannual coupon payment 3%. Since 3% is semiannual, then double it to get 6% annual yield. Always calculate yield in terms of annual percentage. B. Cost $950, semiannual coupon payment 3%. Since 3% is semiannual, then double it to get 6% annual yield. Always calculate yield in terms of annual percentage.

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