2. A bond has a face value of $1,000, an annual coupon rate of 5 percent,...

2. A bond has a face value of $1,000, an annual coupon rate of 5 percent, yield to maturity of 10 percent, and 10 years to maturity

Calculate the bond's duration.

Please answer using EXCEL

Expert Solution

Hello, consider upvoting the answer, it helps a lot and if you have any questions, feel free to ask in the comments section.

calc:

Or you can use the Excel's built-in function:

calc:

jeff jeffy answered 1 year ago

A bond has a face value of $1,000, an annual coupon rate of 5 percent, yield...

A bond has a face value of $1,000, an annual coupon rate of 5 percent, yield to maturity of 10 percent, and 10 years to maturity Calculate the bond's duration.

A corporate bond has a $1,000 face value and a 5 percent coupon rate (annual payments)...

A corporate bond has a $1,000 face value and a 5 percent coupon rate (annual payments) maturing in 3 years. a. If the yield to maturity is 7%, what is the bond price? 2 marks b. An investor believes an appropriate rate to discount the future cash flow of the bond should be 6%, should the investor buy or sell the bond? Discuss the reason(s).

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The...

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $950. If the corporation sells more bonds it will incur flotation costs of $25 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital? please show all steps in the calculation.

An Apple annual coupon bond has a coupon rate of 4.1%, face value of $1,000, and...

An Apple annual coupon bond has a coupon rate of 4.1%, face value of $1,000, and 4 years to maturity. If its yield to maturity is 4.1%, what is its Modified Duration? Answer in years, rounded to three decimal places.

An Apple annual coupon bond has a coupon rate of 6.9%, face value of $1,000, and...

An Apple annual coupon bond has a coupon rate of 6.9%, face value of $1,000, and 4 years to maturity. If its yield to maturity is 6.9%, what is its Modified Duration? Answer in years, rounded to three decimal places.

An annual bond has a face value of $1,000, a coupon rate of 7.4%, a yield...

An annual bond has a face value of $1,000, a coupon rate of 7.4%, a yield to maturity of 6.2% and has 12 years remaining to maturity. What is the price of the bond?

A bond with face Value =$1,000 with semi-annual payments, a coupon rate of 7%, and has...

A bond with face Value =$1,000 with semi-annual payments, a coupon rate of 7%, and has 8 years to maturity. The market requires a yield of 8% on bonds of this risk. What is this bond’s price?

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield...

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield to maturity of 7.5 percent, and 10 years until maturity. Assuming semi-annual coupon payments: d. If the bond were selling for $929, what would the effective yield-to-maturity if you reinvest coupon payments at 9 percent? ***please show the work or what is entered in calculator***

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 7.00% Coupon dates (Annual)...

Bond Features Maturity (years) 5 Face Value = $1,000 Coupon Rate = 7.00% Coupon dates (Annual) Market interest rate today 7.00% Time to call (years) 3 Price if Called $1,070.00 Market interest rate in Year 3 5.00% The above bond is callable in 3 years. When the bond is issued today, interest rates are 7.00% . In 3 years, the market interest rate is 5.00% . Should the firm call back the bonds in year 3 and if so, how...

Bond A has the following features: Face value = $1,000, Coupon Rate = 5%, Maturity...

Bond A has the following features: Face value = $1,000, Coupon Rate = 5%, Maturity = 9 years, Yearly coupons The market interest rate is 6.15% What is the current yield for bond A from today to year 1? Calculate your answer to 2 decimal places (e.g., 5.23)

Question