Question

In: Finance

Find the duration of the bond with the given information. Face value=RM1000 Maturity=6 years Coupon=5% Bond...

Find the duration of the bond with the given information.
Face value=RM1000
Maturity=6 years
Coupon=5%
Bond value=RM1020

Solutions

Expert Solution

Assuming annual coupons
=DURATION(DATE(2011,1,1),DATE(2017,1,1),5%,RATE(6,5%*1000,-1020,1000),1)
=5.3370807


Related Solutions

Given: A $1000 face-value, 20%-coupon bond with 5 years remaining to maturity, and a yield to...
Given: A $1000 face-value, 20%-coupon bond with 5 years remaining to maturity, and a yield to maturity of 10% What is the duration? _____________________. What is the percent volatility? _________________________.
Find the price of a 10.00% coupon bond with a face value of $2000, a 12% yield to maturity, and 5 years to maturity.
Find the price of a 10.00% coupon bond with a face value of $2000, a 12% yield to maturity, and 5 years to maturity. PV = Price of the bond = $____(Round your response to two decimal places.)
A corporate bond has 2 years to maturity, a coupon rate of 6%, a face value...
A corporate bond has 2 years to maturity, a coupon rate of 6%, a face value of $1,000 and pays coupons semiannually. The market interest rate for similar bonds is 7.5%. What is the price of the bond (in $)? What is the bond's duration in years? If yields fall by 0.8 percentage points, what is the new expected bond price based on its duration (in $)? What is the actual bond price after the change in yields (in $)?...
1. What is the Macaulay duration of a 7.4% coupon bond with 6 years to maturity...
1. What is the Macaulay duration of a 7.4% coupon bond with 6 years to maturity and a price of $1,029.90? 2. What is the modified duration?
If you purchase a $1,000 face value, 4% annual coupon bond with 6 years to maturity...
If you purchase a $1,000 face value, 4% annual coupon bond with 6 years to maturity when the going interest rate (or yield) is 3%, then you would pay $1,054.17 for the bond. a) What is your expected rate of return on the bond assuming interest rates do not change and you hold the bond to maturity? b) Suppose that you sell it a year later at which time the going interest rate has risen to 3.5%. What is your...
Bond Face Value Coupon rate Yield to Maturity Term to Maturity Duration A $1000 4% 10%...
Bond Face Value Coupon rate Yield to Maturity Term to Maturity Duration A $1000 4% 10% 5 4.57 B $1000 12% 10% 5 4.07 Now suppose the yield to maturity becomes 11%. What are the % change in prices of bond A and B?
A Treasury bond with 6 months to maturity, with face value of $100, and a coupon...
A Treasury bond with 6 months to maturity, with face value of $100, and a coupon rate of 5% trades for 99:25 and a Treasury bond with 1 year to maturity with a face value of $100 and a coupon rate of 5% trades for 98:27. Determine the 6-month and 1-year risk-free rates of return please do without excel or a financial calculator and show formulas used THE QUESTION IS PRICED LIKE T BILLS BUT ITS SUPPOSED TO BE A...
Bond A is a $1,000, 6% quarterly coupon bond with 5 years to maturity. (a) If...
Bond A is a $1,000, 6% quarterly coupon bond with 5 years to maturity. (a) If you bought Bond A today at a yield (APR) of 8%, what is your purchase price? Is this a premium or discount bond? Why? (b) One year later, Bond A's YTM (APR) has gone down to 6% and you sell it immediately after receiving the coupon. (i) What is the current yield? (ii) What is the capital gains yield? (iii) What is the one-year...
Bond A is a $1,000, 6% quarterly coupon bond with 5 years to maturity. (a) If...
Bond A is a $1,000, 6% quarterly coupon bond with 5 years to maturity. (a) If you bought Bond A today at a yield (APR) of 8%, what is your purchase price? Is this a premium or discount bond? Why? (b) One year later, Bond A's YTM (APR) has gone down to 6% and you sell it immediately after receiving the coupon. (i) What is the current yield? (ii) What is the capital gains yield? (iii) What is the one-year...
Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 7.00% Coupon dates (Annual)...
Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 7.00% Coupon dates (Annual) Market interest rate today 7.00% Time to call (years) 3 Price if Called $1,070.00 Market interest rate in Year 3 5.00% The above bond is callable in 3 years. When the bond is issued today, interest rates are 7.00% . In 3 years, the market interest rate is 5.00% . Should the firm call back the bonds in year 3 and if so, how...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT