Question
In: Finance
A bond with exactly 15 years until maturity paid its semiannual coupon yesterday. The annual coupon...
A bond with exactly 15 years until maturity paid its semiannual coupon yesterday. The annual coupon rate is 6.12% and the bond price today is $1,116 . Suppose that the yield-to-maturity remains constant. Immediately after receiving the coupon in 6 months find the capital gain or loss that the bond will generate. $-2.64 $-1.23 1.27 $0.34 -3.17
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A bond with exactly 15 years until maturity paid its semiannual coupon yesterday. The annual coupon...
A bond with exactly 15 years until maturity paid its semiannual
coupon yesterday. The annual coupon rate is 6.12% and the bond
price today is $1,116 . Suppose that the yield-to-maturity remains
constant. Immediately after receiving the coupon in 6 months find
the capital gain or loss that the bond will generate.
A 6% semiannual coupon bond has 8 years until maturity. Its quoted price is 107.50. if...
A 6% semiannual coupon bond has 8 years until maturity. Its
quoted price is 107.50. if its YTM stays constant, what should be
its quoted price 1 year from now?
For a semi-annual coupon bond with 3 years to maturity, an annual coupon of 8% (paid...
For a semi-annual coupon bond with 3 years to maturity, an
annual coupon of 8% (paid 4% each six-month period), and a current
yield to maturity of 4.5%,
What is the Macauley duration of this bond?
What is the modified duration of this bond?
An investor owns $100M (market value or price NOT face or par)
of these bonds, what is the Dollar Duration of this position?
What is the price elasticity of this bond for a 1bp increase in...
Suppose there is a Treasury bond with exactly 15 years left to maturity, a 5% coupon,...
Suppose there is a Treasury bond with exactly 15 years left to
maturity, a 5% coupon, par of 100, and a 2.6% yield-to-maturity?
(Recall that Treasury notes pay semi-annual coupons.) What is the
modified duration of this bond?
A 3.41
B 7.99
C 11.17
D 14.23
Shanken Corp. issued a bond with a maturity of 15 years and a semiannual coupon rate...
Shanken Corp. issued a bond with a maturity of 15 years and a
semiannual coupon rate of 10 percent 4 years ago. The bond
currently sells for 91 percent of its face value. The book value of
the debt issue is $60 million. In addition, the company has a
second debt issue on the market, a zero coupon bond with 11 years
left to maturity; the book value of this issue is $35 million and
the bonds sell for 51...
Consider a 8% coupon bond making annual coupon payments with 4 years until maturity and a...
Consider a 8% coupon bond making
annual coupon payments with 4 years until maturity and a
yield to maturity of 10%.
What is the modified duration of this bond?
If the market yield increases by 75 basis points, what is the
actual percentage change in the bond’s
price? [Actual, not approximation]
Given that this bond’s convexity is 14.13, what price would you
predict using the duration-with-convexity
approximation for this bond at this new yield?
What is the percentage error?
Consider a 8% coupon bond making annual coupon payments with 4 years until maturity and a...
Consider a 8% coupon bond making
annual coupon payments with 4 years until maturity and a
yield to maturity of 10%.
What is the modified duration of this bond?
If the market yield increases by 75 basis points, what is the
actual percentage change in the bond’s
price? [Actual, not approximation]
Given that this bond’s convexity is 14.13, what price would you
predict using the duration-with-convexity
approximation for this bond at this new yield?
What is the percentage error?
Please...
Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity....
Five years ago, Rock Steady Corp issued a semiannual coupon bond
with seven years until maturity. This bond was originally issued at
par with a $1,000 face value. The coupon rate on the bond is 8%.
Today, the yield-to-maturity (YTM) is 10%. Assume an investor
bought the bond at the time it was issued and sold it today. What
is the holding period return for the five year period of
investment?
Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity....
Five years ago, Rock Steady Corp issued a semiannual coupon bond
with seven years until maturity. This bond was originally issued at
par with a $1,000 face value.
The coupon rate on the bond is 8%. Today, the yield-to-maturity
(YTM) is 10%.
What was yield to maturity of this bond when it was issued?
PLEASE give step by step solutions!
8%
9%
8.5%
7.5%
Five years ago, Rock Steady Corp issued a semiannual coupon bond with seven years until maturity....
Five years ago, Rock Steady Corp issued a semiannual coupon bond
with seven years until maturity. This bond was originally issued at
par with a $1,000 face value. The coupon rate on the bond is 8%.
Today, the yield-to-maturity (YTM) is 10%. What was yield to
maturity of this bond when it was issued? Show calculations.
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