Question
In: Finance
Calculate the duration of a 3 year from maturity bond that has a 1.50% annual pay...
Calculate the duration of a 3 year from maturity bond that has a 1.50% annual pay coupon rate and a 6.50% yield. (Use 4 decimal point precision.)
Solutions
Expert Solution
JUST PRESENTED IN EXCEL BUT NO EXCEL FUNCTION IS
USED.
jeff jeffy answered 3 months agoRelated Solutions
Calculate the duration of a 3 year from maturity bond that has a 5.00% annual pay...
Calculate the duration of a 3 year from maturity bond that has a
5.00% annual pay coupon rate and a 2.50% yield. (Use 4 decimal
point precision.)
What is the Macaulay Duration of a 4.4% annual coupon bond with 3 years to maturity,...
What is the Macaulay Duration of a 4.4% annual coupon bond with
3 years to maturity, $1,000 face value, and yield to maturity of
4.4%? Round to three decimal places.
a. 2.865
b. 2.821
c. 2.886
d. 2.875
e. 2.908
What is the Macaulay Duration of a 6.8% annual coupon bond with 3 years to maturity,...
What is the Macaulay Duration of a 6.8% annual coupon bond with
3 years to maturity, $1,000 face value, and yield to maturity of
6.8%? Round to three decimal places.
A 28-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 28-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 12.14 years and convexity of
190.6. The bond currently sells at a yield to maturity of 7%.
Required:
(a)
Find the price of the bond if its yield to maturity falls to 6%
or rises to 8%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of 6%
$
Yield to maturity of 8%
$ ...
A 28-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 28-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 12.14 years and convexity of
190.6. The bond currently sells at a yield to maturity of 7%.
Required:
(a)
Find the price of the bond if its yield to maturity falls to 6%
or rises to 8%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of 6%
$
Yield to maturity of 8%
$ ...
A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has duration...
A 30-year maturity bond making annual coupon payments with a
coupon rate of 12% has duration of 11.54 years and convexity of
190.8. The bond currently sells at a yield to maturity of 8%.
Required:
(a)
Find the price of the bond if its yield to maturity falls to 7%
or rises to 9%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of 7%
$
Yield to maturity of 9%
$ ...
A 30-year maturity bond making annual coupon payments with a coupon rate of 15.0% has duration...
A 30-year maturity bond making annual coupon payments with a
coupon rate of 15.0% has duration of 9.41 years and convexity of
129.3. The bond currently sells at a yield to maturity of
11%.
a. Find the price of the bond if its yield to
maturity falls to 10%. (Do not round intermediate
calculations. Round your answer to 2 decimal places.)
Price of the bond
$
b. What price would be predicted by the duration
rule? (Do not round intermediate...
A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has duration...
A 30-year maturity bond making annual coupon payments with a
coupon rate of 12% has duration of 11.54 years and convexity of
192.4. The bond currently sells at a yield to maturity of 8%.
Please find the price of the bond if its yield to maturity
falls to 7% or rise to 9%.
What prices for the bond at these new yields would be predicted
by the duration rule and the duration-with-convexity rule? What is
the percent error for each...
A 30-year maturity bond making annual coupon payments with a coupon rate of 11% has duration...
A 30-year maturity bond making annual coupon payments with a
coupon rate of 11% has duration of 12.44 years and convexity of
221.07. The bond currently sells at a yield to maturity of
7%.
a. Find the price of the bond if its yield to
maturity falls to 6%.
b. What price would be predicted by the
duration rule?
c. What price would be predicted by the
duration-with-convexity rule?
d-1. What is the percent error for each
rule?
d-2. What...
A 30-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 30-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 10.37 years and convexity of
157.28. The bond currently sells at a yield to maturity of 10%.
a. Find the price of the bond if its yield to
maturity falls to 9%. (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
b. What price would be predicted by the
duration rule? (Do not round intermediate calculations.
Round your answers to...
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