The McCauley’s duration of a 5-year zero-coupon bond yielding 4% is ________ years and the modified...

The McCauley’s duration of a 5-year zero-coupon bond yielding 4% is ________ years and the modified duration of a 5-year zero-coupon bond yielding 4% is ________ years.

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Question 4. A 12.75-year maturity zero-coupon bond has convexity of 150.3 and modified duration of 11.81...

Question 4. A 12.75-year maturity zero-coupon bond has convexity of 150.3 and modified duration of 11.81 years. A 30-year maturity 6% coupon bond with annual coupon payments has nearly identical modified duration of 11.79 years, but considerably higher convexity of 231.2. Suppose the yield to maturity on both bonds increases by 1%. What percentage change in price of the bonds as predicated by the duration plus convexity model? (6) Repeat part (a), but this time assume that the yield to...

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a) Compute the modified duration of a 9% coupon, 4-year corporate bond with a yield to...

a) Compute the modified duration of a 9% coupon, 4-year corporate bond with a yield to maturity of 10%. b) Using the modified duration, If the market yield drops by 25 basis points, there will be a __________% (increase/decrease) in the bond's price.

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You have two bonds (A and B) with a (modified) duration of 4.3. Bond A is a coupon bond with a semi-annual coupon of SEK 75 and Bond B is a zero coupon bond.

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Bond Coupon Rate Yield Maturity Duration A 7% 3.5% 4 Years B Zero Coupon 5.25% 8...

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A 5-year zero-coupon bond must have a price that is _________________ a 10-year zero-coupon bond. A....

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What is the approximate modified duration of a 22-year bond, making semiannual coupon payments, with a...

What is the approximate modified duration of a 22-year bond, making semiannual coupon payments, with a coupon rate of 5% and a current price of 69.18 per 100 of par value, considering a 50 bps change in discount rate?

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