Question

In: Finance

Find the convexity of a seven-year maturity, 8.6% coupon bond selling at a yield to maturity...

Find the convexity of a seven-year maturity, 8.6% coupon bond selling at a yield to maturity of 9.4%. The bond pays its coupons annually. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Convexity            

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. It is easy to prepare in table format and easy to remember for exams


Related Solutions

Find the convexity of a seven-year maturity, 5.2% coupon bond selling at a yield to maturity...
Find the convexity of a seven-year maturity, 5.2% coupon bond selling at a yield to maturity of 7.9%. The bond pays its coupons annually.(Do not round intermediate calculations. Round your answer to 4 decimal places.) Assume $1,000 par value
Find the convexity of a 10-year maturity, 5% coupon bond selling at a yield to maturity...
Find the convexity of a 10-year maturity, 5% coupon bond selling at a yield to maturity of 6%. the bond pays its coupons annually.
Find the promised yield to maturity for a 9% coupon, $1,000 par 20 year bond selling...
Find the promised yield to maturity for a 9% coupon, $1,000 par 20 year bond selling at $920.56. The bond makes semiannual coupon payments. a)9.44%   b)9.92% c)9.99%   d)10.14% Yield to Call Find the yield to call for a 8% coupon, $1,000 par 15 year bond selling at $1045.50 if the bond is callable in 10 years at a call price of $1,080. The bond makes semiannual coupon payments. a) 6.88% b) 7.13% c)6.73% d)7.87%
A 12.25-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield)...
A 12.25-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 139.2 and modified duration of 11.34 years. A 40-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8% has nearly identical modified duration—-12.30 years—but considerably higher convexity of 272.9. a. Suppose the yield to maturity on both bonds increases to 9%. What will be the actual percentage capital loss on each bond? What...
A 12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield)...
A 12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 150.3 and modified duration of 11.81 years. A 30-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8% has nearly identical duration—11.79 years—but considerably higher convexity of 231.2. Suppose the yield to maturity on both bonds increases to 9%. What will be the actual percentage capital loss on each bond? What percentage capital...
A 13.05-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield)...
A 13.05-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 120.2 and modified duration of 11.91 years. A 40-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8% has nearly identical modified duration—-11.65 years—-but considerably higher convexity of 280.2. a. Suppose the yield to maturity on both bonds increases to 9%. What will be the actual percentage capital loss on each bond? What...
A 14.55-year maturity zero-coupon bond selling at a yield to maturity of 7% (effective annual yield)...
A 14.55-year maturity zero-coupon bond selling at a yield to maturity of 7% (effective annual yield) has convexity of 197.7 and modified duration of 13.60 years. A 40-year maturity 5% coupon bond making annual coupon payments also selling at a yield to maturity of 7% has nearly identical modified duration—-13.96 years—but considerably higher convexity of 338.8. a. Suppose the yield to maturity on both bonds increases to 8%. What will be the actual percentage capital loss on each bond? What...
A 13.05-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield)...
A 13.05-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 157.2 and modified duration of 12.08 years. A 40-year maturity 6% coupon bond making annual coupon payments also selling at a yield to maturity of 8% has nearly identical modified duration—-12.30 years—-but considerably higher convexity of 272.9. a. Suppose the yield to maturity on both bonds increases to 9%. What will be the actual percentage capital loss on each bond? What...
Find the yield to maturity of a par $10,000 bond selling at $9,800 with semiannual coupon...
Find the yield to maturity of a par $10,000 bond selling at $9,800 with semiannual coupon payments equal to $280 and maturing in 8years. State the formula and substitute the figures in to the formula to derive the correct answer if possible?
Consider a five-year bond with a 10% coupon selling at a yield to maturity of 8%....
Consider a five-year bond with a 10% coupon selling at a yield to maturity of 8%. If interest rates remain constant, one year from now the price of this bond will be: A. Higher B. Lower C. The same D. Par
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT