Question

In: Finance

An annual payment bond with a $1,000 par has a 5% quoted coupon rate, 6% promised...

An annual payment bond with a $1,000 par has a 5% quoted coupon rate, 6% promised YTM , and 6 years to maturity. What is the bond's duration and modified duration?


Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...
A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised YTM, and 10 years to maturity. Find the bond's duration.
A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a...
A semiannual payment bond with a $1,000 par has a 7 percent quoted coupon rate, a 7 percent promised YTM, and 10 years to maturity. Find the bond's duration. please show in excel
A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon...
A bond with a par value of $1,000 has a 6% coupon rate with semi-annual coupon payments made on July 1 and January 1. If the bond changes hands on November 1, which of the following is true with respect to accrued interest? The buyer will pay the seller $20 of accrued interest The seller will pay the buyer $20 of accrued interest The buyer will pay the seller $10 of accrued interest The seller will pay the buyer $10...
A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield...
A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield to maturity of 7.5 percent, and 10 years until maturity. Assuming semi-annual coupon payments: d.         If the bond were selling for $929, what would the effective yield-to-maturity if you reinvest coupon payments at 9 percent? ***please show the work or what is entered in calculator***
A $1,000 par value bond has a coupon interest rate of 6 percent. The interest payment...
A $1,000 par value bond has a coupon interest rate of 6 percent. The interest payment is ? a. $160 b. $6 c. need to know the maturity date d. $60
A. Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate...
A. Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a promised yield to maturity of 7.6% and exactly 4 years to maturity. What is the bond's current value? B. Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 6%, a promised yield to maturity of 4.8% and exactly 12 years to maturity. The present value of the coupon stream represents ______ of the total...
Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of...
Bond Prices A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 4%, a promised yield to maturity of 3.5% and exactly 12 years to maturity. The present value of the coupon stream represents ______ of the total bond's value. A.)37.1% B.)38.2% C.)39.5% D.)36.0%
. A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently...
. A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $780. If the yield to maturity remains at the current rate, what will the price be 10 years from now?
AEP has a 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond...
AEP has a 25-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 8 years from now? Group of answer choices $901.78 $842.91 $892.55 $934.46 $953.25
Bond Returns: A 15-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond...
Bond Returns: A 15-year, $1,000 par value bond has an 8.5% annual payment coupon. The bond currently sells for $925. After one year, assuming the the yield to maturity (discount rate) remains the same as previous, calculate the following returns between the two years: 1) Current yield 2) Capital gains yield 3) Total returns Hint: solve the rate (yield to maturity) for the 25-year bond. with the same yield to maturity, solve the price for the bond with shorter maturity....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT