Question
In: Finance
a. Find the duration of a 10% coupon bond making annual coupon payments if it has...
a. Find the duration of a 10% coupon bond making annual coupon payments if it has three years until maturity and has a yield to maturity of 10%. Note: The face value of the bond is $1,000.
b. What is the duration if the yield to maturity is 13%? Note: The face value of the bond is $1,000.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Find the duration of a 3% coupon bond making annual coupon payments if it has three...
Find the duration of a 3% coupon bond making annual
coupon payments if it has three years until maturity and a yield to
maturity of 6.1%. What is the duration if the yield to maturity is
10.1%? (Do not round intermediate calculations. Round your
answers to 4 decimal places.)
YTM
Duration
6.1% YTM
10.1% YTM
Find the duration of a 8% coupon bond making annual coupon payments if it has three...
Find the duration of a 8% coupon bond making annual
coupon payments if it has three years until maturity and a yield to
maturity of 7%.
Find the bond price.
If the market interest rates decrease by .5% per year (i.e. YTM
becomes 6.5%). Use duration formula to find how such interest rate
change will affect the bond price?
Find the new bond price using a financial calculator.
Compare actual and duration predicted bond price changes.
Which change is larger?...
Find the duration of a 3% coupon bond making annual coupon payments if it has three...
Find the duration of a 3% coupon bond making annual
coupon payments if it has three years until maturity and a yield to
maturity of 6.1%. What is the duration if the yield to maturity is
10.1%? (Do not round intermediate calculations. Round your
answers to 4 decimal places.)
YTM
Duration
6.1% YTM
10.1% YTM
Find the duration of a 6.0% coupon bond making annual coupon payments if it has four...
Find the duration of a 6.0% coupon bond making annual coupon
payments if it has four years to maturity and a yield to maturity
of 5.0%. (assuming a face value of $1,000)
A.
4.54 Years
B.
4.00 Years
C.
3.82 Years
D.
5.00 Years
E.
3.68 Years
F.
4.48 Years
Find the duration of a 8% coupon bond making annual coupon payments if it has 3...
Find the duration of a 8% coupon bond making annual coupon
payments if it has 3 years until maturity and has a yield to
maturity of 10%. Note: The face value of the bond is $1,000. (Do
not round intermediate calculations. Round your answers to 3
decimal places.) 10% YTM: Duration = ________ years
Find the duration of a 6% coupon bond making annual coupon payments if it has three...
Find the duration of a 6% coupon bond making annual coupon
payments if it has three years until maturity and a yield to
maturity of 10%.
Find the duration of a 5% coupon bond making annual coupon payments if it has three...
Find the duration of a 5% coupon bond making annual
coupon payments if it has three years until maturity and a yield to
maturity of 6.3%. What is the duration if the yield to maturity is
10.3%?
A 28-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 28-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 12.14 years and convexity of
190.6. The bond currently sells at a yield to maturity of 7%.
Required:
(a)
Find the price of the bond if its yield to maturity falls to 6%
or rises to 8%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of 6%
$
Yield to maturity of 8%
$ ...
A 28-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 28-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 12.14 years and convexity of
190.6. The bond currently sells at a yield to maturity of 7%.
Required:
(a)
Find the price of the bond if its yield to maturity falls to 6%
or rises to 8%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of 6%
$
Yield to maturity of 8%
$ ...
A 30-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 30-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 10.37 years and convexity of
157.28. The bond currently sells at a yield to maturity of 10%.
a. Find the price of the bond if its yield to
maturity falls to 9%. (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
b. What price would be predicted by the
duration rule? (Do not round intermediate calculations.
Round your answers to...
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