what is the duration of a three year treasury note with the coupan rate of 3...

what is the duration of a three year treasury note with the coupan rate of 3 percent if the note is selling for par? what is its current yield to maturity is 10 percent? (assume only one payment per year. Treat the security as having a per value $100.) whats the duration of three year zero coupan security at an interest rate of 3 percent? an interest rate of 10 percent

Expert Solution

Please let me know in case you have any queries and I would be happy to assist you.

jeff jeffy answered 2 years ago

What is the duration of a three-year bond with a 3% coupon rate and a 3%...

What is the duration of a three-year bond with a 3% coupon rate and a 3% yield to maturity? (If necessary, you can assume the face value of the bond is $1,000.) A. 2.8334 B. 2.8861 C. 2.8594 D. 2.9416 E. 2.9135

A 2-year Treasury bill currently offers a 22% rate of return. A 3-year Treasury note offers...

A 2-year Treasury bill currently offers a 22% rate of return. A 3-year Treasury note offers a 44% rate of return. Under the expectations theory, what rate of return do investors expect a 1-year Treasury bill to pay 2 year from now? The rate of return investors expect a 1-year Treasury bill to pay 2 years from now is

What is the price of a 2-year Treasury note with a 4.6% coupon rate and semiannual...

What is the price of a 2-year Treasury note with a 4.6% coupon rate and semiannual coupon payments if the annualized theoretical spot rates for 6-month, 12-month, 1.5-year, and 2-year maturities are 2.1%, 3.1%, 4.27%, and 5.42%, respectively? Express in % of par, round to 0.001. E.g., if your answer is 102.3785, record it as 102.379.

Assume that the interest rate on a one-year Treasury bill is 5.4 percent and the rate on a two-year Treasury note is 9.0 percent.

Assume that the interest rate on a one-year Treasury bill is 5.4 percent and the rate on a two-year Treasury note is 9.0 percent.(a)If the expected real rate of interest is 2.4 percent, determine the inflation premium on the Treasury bill. (Round answer to 1 decimal place, e.g. 527.5.)(b) Using the expected real rate of interest from Part A, if the maturity risk premium is expected to be zero, determine the inflation premium on the Treasury note. (Round answer to...

What is the duration of a 20 year Treasury with a 2% coupon and a YTM...

What is the duration of a 20 year Treasury with a 2% coupon and a YTM of 2% and face value = $100,000? If rates fall 150bp, what is your estimate of the dollar change in value?

Assume that a 3-year Treasury note has no maturity premium, and that the real, risk-free rate of interest is 3 percent.

Assume that a 3-year Treasury note has no maturity premium, and that the real, risk-free rate of interest is 3 percent. If the T-note carries a yield to maturity of 15.9 percent, and if the expected average inflation rate over the next 2 years is 13.9 percent, what is the implied expected inflation rate during Year 3?

Consider the following. a. What is the duration of a four-year Treasury bond with a 4...

Consider the following. a. What is the duration of a four-year Treasury bond with a 4 percent semiannual coupon selling at par? b. What is the duration of a three-year Treasury bond with a 4 percent semiannual coupon selling at par? c. What is the duration of a two-year Treasury bond with a 4 percent semiannual coupon selling at par? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Consider the following. a. What is the duration of a five-year Treasury bond with a 10...

Consider the following. a. What is the duration of a five-year Treasury bond with a 10 percent semiannual coupon selling at par? b. What is the duration of the above bond if the yield to maturity (ytm) increases to 14 percent? What if the ytm increases to 16 percent? c. What can you conclude about the relationship between duration and yield to maturity? please show in excel

Consider the following. a. What is the duration of a four-year Treasury bond with a 14...

Consider the following. a. What is the duration of a four-year Treasury bond with a 14 percent semiannual coupon selling at par? b. What is the duration of a three-year Treasury bond with a 14 percent semiannual coupon selling at par? c. What is the duration of a two-year Treasury bond with a 14 percent semiannual coupon selling at par?

Consider the following. a. What is the duration of a four-year Treasury bond with a 8...

Consider the following. a. What is the duration of a four-year Treasury bond with a 8 percent semiannual coupon selling at par? b. What is the duration of a three-year Treasury bond with a 8 percent semiannual coupon selling at par? c. What is the duration of a two-year Treasury bond with a 8 percent semiannual coupon selling at par? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) A 3.5years B...

Question