Question

In: Finance

Consider a 4-year bond with 12 percent semi-annual coupon payments and currently priced to yield 10...

Consider a 4-year bond with 12 percent semi-annual coupon payments and currently priced to yield 10 per cent per annum.

Calculate duration of the bond.

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Consider a 3-year bond with 14 percent semi-annual coupon payments and currently priced to yield 12...
Consider a 3-year bond with 14 percent semi-annual coupon payments and currently priced to yield 12 per cent per annum. Calculate duration of the bond. What is the percentage of price change if interest rate increases to 12.15% per annum?
Consider a 3-year bond with 14 percent semi-annual coupon payments and currently priced to yield 12...
Consider a 3-year bond with 14 percent semi-annual coupon payments and currently priced to yield 12 per cent per annum. Calculate duration of the bond. What is the percentage of price change if interest rate increases to 12.15% per annum?
Consider a 5- year bond with a semi-annual 10% coupon and a yield to maturity(ytm) of...
Consider a 5- year bond with a semi-annual 10% coupon and a yield to maturity(ytm) of 9.00%. what is the duration of this bond in years?
A 10-year, 10% coupon bond, semi-annual payments, $1,000 Par, is expected to make all coupon payments...
A 10-year, 10% coupon bond, semi-annual payments, $1,000 Par, is expected to make all coupon payments but to pay only 50% of par value at maturity. What is the expected yield on this bond if the bond is purchased for $975? a. 10.00% b. 6.77% c. None of the options are correct. d. 11.68% e. 6.68%
A $4,000 bond with a 3% coupon compounded semi-annually is currently priced to yield 8% with...
A $4,000 bond with a 3% coupon compounded semi-annually is currently priced to yield 8% with 19 years remaining to maturity. What is the yield to maturity five years from now if the bond price rises $225 at that time?
            A 10-year bond has a 10 percent annual coupon and a yield to maturity of...
            A 10-year bond has a 10 percent annual coupon and a yield to maturity of 12 percent. The bond can be called in 5 years at a call price of $1,050 and the bond’s face value is $1,000. Which of the following statements is most correct? Please explain why.             a.   The bond’s current yield is greater than 10 percent.             b.   The bond’s yield to call is less than 12 percent.             c.   The bond is selling at...
Suppose you purchase a 10-year, 4% semi-annual coupon bond for 78.681. If the yield remains constant...
Suppose you purchase a 10-year, 4% semi-annual coupon bond for 78.681. If the yield remains constant and you reinvest the coupons you receive at that yield, what will be the value of those coupons when the bond matures in 10 years?
What is the yield to maturing for a 6% coupon bond, with semi-annual payments, with 15...
What is the yield to maturing for a 6% coupon bond, with semi-annual payments, with 15 years remaining to maturity and selling at a price of $912.36?
last year you purchased a 10 year semi-annual coupon bond with coupon rate of 12% and...
last year you purchased a 10 year semi-annual coupon bond with coupon rate of 12% and face value of $1000. the bonds yield to maturity was 11% then. a year past and the market interest rate increases by 1 percentage point. your one-year holding period return is____% (rounded with two decimal places)
Regarding a 3-year bond with 14 percent semi-annual coupon payments and with a current price to...
Regarding a 3-year bond with 14 percent semi-annual coupon payments and with a current price to yield 12 per cent per annum. Calculate duration of the bond. What is the percentage of price change if interest rate increases to 12.15% per annum? Please show working out.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT