You will be paying $12.800 a year in tuition expenses at the end of the next two years Bonds currently yield 8% Required: 6. What are the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value to 2 decimal places and "Duration" to 4 decimal places) Present value Duration Answer is complete and correct. S 22.825 79 14000 years b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value to 2 decimal places.)

You will be paying $12.800 a year in tuition expenses at the end of the next two years Bonds currently yield 8% Required: 6. What are the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value to 2 decimal places and "Duration" to 4 decimal places) Present value Duration Answer is complete and correct. S 22.825 79 14000 years b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value to 2 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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Question

You will be paying $12,800 a year in tuition expenses at the end of the next two years. Bonds currently yield 8%
Required:
a. What are the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2
decimal places and "Duration" to 4 decimal places)
Present value
Duration
Answer is complete and correct.
S 22.825 79
14000 years
b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round
intermediate calculations. Round "Duration to 4 decimal places and "Future redemption value to 2 decimal places.)
Duration
Future redemption value
Answer is not complete.
14800 years

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