Question

In: Finance

You own a bond with a $20,000 face value and a 4.75% coupon with semiannual payments....

You own a bond with a $20,000 face value and a 4.75% coupon with semiannual payments. The bond matures in 18 months and the yield to maturity is 3%. What is the Macaulay duration of your bond?

Solutions

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

You own a bond with a $1000 face value that pays a 12.2% annualised semiannual coupon...
You own a bond with a $1000 face value that pays a 12.2% annualised semiannual coupon rate and has 10 years to maturity. If the discount rate increases from 14% to 16% during the next two years of the bonds life, then what is the bond’s change in dollar value during the two-year period? Select one: a. $-71.17 b. $72.83 c. $71.17 d. $-72.83
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 9.40%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $1,100? b. What is the yield to maturity if the bond is selling for $1,000? c. What is the yield to maturity if the bond is selling for $1,090?
A 25​-year bond with a face value of $1,000 has a coupon rate of 8.50%​, with semiannual payments.  
  4) A 25​-year bond with a face value of $1,000 has a coupon rate of 8.50%​, with semiannual payments.   a. What is the coupon payment for this​ bond? b. Enter the cash flows for the bond on a timeline. a. What is the coupon payment for this​ bond? The coupon payment for this bond is $ -----. (Round to the nearest​ cent.) b. Enter the cash flows for the bond on a timeline. Cash Flow Amount ​(Round to the...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) What is the yield to maturity if the bond is selling for $900? What is the yield to maturity if the bond is selling for $1,100? What is the yield to maturity if the bond is selling for $1,000?
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 7.80%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $920? b. What is the yield to maturity if the bond is selling for $1,000? c. What is the yield to maturity if the bond is selling for $1,125?
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.0%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $930? What is the yield to maturity if the bond is selling for $1,135?
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 7.8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) A. What is the yield to maturity if the bond is selling for $980? B. What is the yield to maturity if the bond is selling for $1,000? C. What is the yield to maturity if the bond is selling for $1,165?
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...
A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 7.8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the yield to maturity if the bond is selling for $920?   Yield to maturity %   b. What is the yield to maturity if the bond is selling for $1,000?   Yield to maturity %   c. What is the yield to maturity if...
Suppose that you bought a five year coupon bond with $20,000 face value, 7% coupon rate...
Suppose that you bought a five year coupon bond with $20,000 face value, 7% coupon rate and 7% yield to maturity. After holding it for a year and collecting the first coupon payment you decide to sell it. Calculate the return (in %) on this investment if the interest rate has increased to 9% while selling the bond.
A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a...
A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a yield to maturity of 5.25 percent. The bond matures in 9 years. What is the price of the bond, What will happen to the price if market interest rates rise to 6.45 percent, what can you say about the relationship between the price of a bond and the market interest rate?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT