A bond with a coupon rate of 7 percent sells at a yield to
maturity of 8 percent. If the bond matures in 11 years, what is the
Macaulay duration of the bond? What is the modified duration?
A bond with a coupon rate of 7 percent sells at a yield to
maturity of 9 percent. If the bond matures in 12 years, what is the
Macaulay duration of the bond? What is the modified duration? (Do
not round intermediate calculations. Round your answers to 3
decimal places.)
Duration
Macaulay
years
Modified
years
Suppose a semiannual coupon bond with a 7% annualized coupon
rate has an annual yield of 5% compounded semiannually. It matures
in 10 years to its face of $10,000. 1)Compute the price. 2) What
its modified duration?
Find the price of 10-year 5% coupon bond if the price of 10-year
7% coupon bond is $107 and 10-year interest rate is 6.5%. All bonds
have $100 face value and pay semi-annual coupons.
If the yield of maturity of the bond is lower than the coupon
rate, the price of this bond will be?
Select one:
a. Higher than the par value.
b. Lower than the par value.
c. Equal the par value.
The situation in which the current market price is greater than
intrinsic value is called:
Select one:
a. All answers are incorrect.
b. Equilibrium.
c. Stock undervalued.
d. Stock overvalued.
An investor is considering purchasing a 10-year zero-coupon bond
of...
Par Value
Coupon Rate
Years to Maturity
Yield to Maturity
Price
$1,000.00
5%
15
10%
?
$1,000.00
12%
30
11%
?
$5,000.00
7%
5
12%
?
$1,000.00
10%
30
8%
?
Find the price for the bond in the following table: (Round to
the nearest cent.)
What is the yield of a 3-year bond with a coupon rate of 7% and
face value of $100? Assume the bond is currently trading at a price
of $100, and that coupons are paid semi-annually. Assume
semi-annual compounding.
The yield to maturity of a $1000 bond with a 7% coupon rate,
semiannual coupons, and two years to maturity is 7.6% APR,
compounded semiannually. What must its price be?