A bond has a coupon rate of 6.5 percent and 5 years to maturity. It has...

A bond has a coupon rate of 6.5 percent and 5 years to maturity. It has a yield to maturity of 8 percent and is selling in the market for $940.11. This bond has a face value of $1000. What is the duration of this bond?

Suppose the Augustina National Bank has assets with a duration of 6 years and liabilities with a duration of 3.0 years. This bank has $200 million in assets and $180 million in liabilities. What is the leverage adjusted duration gap of this bank?

Expert Solution

jeff jeffy answered 2 years ago

Consider a bond that has a coupon rate of 5%, five years to maturity, and is...

Consider a bond that has a coupon rate of 5%, five years to maturity, and is currently priced to yield 6%. Calculate the following:  Macaulay duration  Modified duration  Percentage change in price for a 1% increase in the yield to maturity

A bond with 22 years until maturity has a coupon rate of 7.8 percent and a...

A bond with 22 years until maturity has a coupon rate of 7.8 percent and a yield to maturity of 6.3 percent. What is the price of the bond?

A bond has a coupon rate of 10 percent and 4 years until maturity. If the...

A bond has a coupon rate of 10 percent and 4 years until maturity. If the yield to maturity is 10.3 percent, what is the price of the bond?

A bond has a coupon rate of 7% and has 5 years until maturity. If the...

A bond has a coupon rate of 7% and has 5 years until maturity. If the current yield to maturity is 5%, what is the price of the bond? What is the amount of the annual interest payment paid to the bondholder?

A corporate bond with a 5 percent coupon has 10 years left to maturity. It has...

A corporate bond with a 5 percent coupon has 10 years left to maturity. It has a credit rating of BBB and a yield to maturity of 8.0 percent. Recently, the firm has gotten into some trouble and the rating agency is downgrading the firm’s bonds to BB. The new appropriate discount rate will be 9 percent. What will be the change in the bond's price, in dollars? Assume interest payments are paid semi-annually and par value is $1,000. (Round...

assume a bond has 5 years to maturity, a price of 1032, a coupon rate of...

assume a bond has 5 years to maturity, a price of 1032, a coupon rate of 6%, a par value of 1000, and 1 coupon payment per year. find the bonds yield to maturity. If the number of coupon payments per year was 4 instead of 1, what would be the bonds new yield to maturity

A corporate bond with a coupon rate of 7.2 percent has 18 years left to maturity....

A corporate bond with a coupon rate of 7.2 percent has 18 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.9 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 9.2 percent. (Assume interest payments are semiannual.) What will be the change in the bond’s price in dollars? (Negative amount should be indicated...

There is a 5.5 percent coupon bond that has eighteen years to maturity. This bond is...

There is a 5.5 percent coupon bond that has eighteen years to maturity. This bond is priced to offer a 6.25 percent yield to maturity. CNBC analysts believe that a year from now, the yield to maturity will be 5.75 percent. What is the change in price the bond will experience in dollars? (Assume semi-annual interest payments and $1,000 face value.) If someone could walk me through how to do this, that would be fantastic! Thanks so much!

1. A bond has a coupon rate of 7% and has 5 years until maturity and...

1. A bond has a coupon rate of 7% and has 5 years until maturity and the yield to maturity is 5%. (4 points) a. What is the price of the bond? ___________________ (2 points) b. How much annual interest is paid to the bondholder? _____________ (2 points) 2. A zero-coupon bond with a 20-year maturity, has a yield to maturity of 6% and a par value of $100,000? a. What is the price of the bond? ______________. (2 points)...

Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of...

Bond J has a coupon rate of 5 percent. Bond K has a coupon rate of 9 percent. Both bonds have 9 years to maturity, make semiannual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond J? -23.65% -21.67% -22.67% -23.67% If interest rates suddenly rise by 4 percent, what is the percentage price change of Bond K? 31.98% -21.57% -19.59% -21.59% If interest rates...

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