Question
In: Finance
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?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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
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...
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 10 percent. Both bonds have 9 years to maturity, make semiannual
payments, and have a YTM of 6 percent.
A. If interest rates suddenly rise by 3 percent, what is the
percentage price change of Bond J?
B. If interest rates suddenly rise by 3 percent,
what is the percentage price change of Bond K?
C. If interest rates suddenly fall by 3 percent,...
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