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
jeff jeffy answered 2 years agoRelated 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...
Consider the following bond: Face value = 1000; coupon rate = 8%; maturity = 5 years;...
Consider the following bond: Face value = 1000; coupon rate =
8%; maturity = 5 years; ytm = 7%
A) What is the value of the bond today and in 2 years?
b) what are the current yield and capital gains yield for this
bond this year and in two years?
c) Assuming interest rates remain the same over this bond's
lifetime, what is going to happen to the value of this bond as time
goes by?
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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- . Use the following information to calculate your company's expected return State Probability Return Boom 20%...
- You are considering the following two projects and can only take one. Your cost of capital...
- C++: Write a program that produces truth tables for the following compound propositions. Write the header...
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
ADVERTISEMENT