Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until...

Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until maturity. If the bond sells for $833⁹⁵⁵⁴ what is your capital gain yield between T=6 and T=7.

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jeff jeffy answered 2 years ago

Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until...

Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until maturity. If the bond sells for $833.9554 what is your capital gain yield between T=6 and T=7.

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...

A bond that matures in 6 years has an 8 percent coupon rate,semiannual payments, a...

A bond that matures in 6 years has an 8 percent coupon rate, semiannual payments, a face value of $1,000, and a 7.7 percent current yield. What is the bond’s nominal yield to maturity (YTM)?

A bond has 8 years until maturity, a coupon rate of 8%, and sells for 1,100...

A bond has 8 years until maturity, a coupon rate of 8%, and sells for 1,100 a. If the bond has a yield to maturity of 8% 1 year from now, what will its price be? Price $ b. What will be the rate of return on the bond? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % c. If the inflation rate during...

Bond A is a 6 % coupon bond and makes annual payments with 10 years to...

Bond A is a 6 % coupon bond and makes annual payments with 10 years to maturity. Bond B is a 6% coupon bond and makes annual payments with 20 years to maturity. Both bonds have a market required return of 10% and face value of 1,000. b) What will happen to the prices of both bonds if the interest rate increases by 2%? Explain

1. A semi-annual coupon bond with 25 years until maturity has a coupon rate of 7.2...

1. A semi-annual coupon bond with 25 years until maturity has a coupon rate of 7.2 percent and a yield to maturity of 6 percent. If the par value is $1000, what is the price of the bond?

A municipal bond has 6 years until maturity and sells for $5,420. If the coupon rate...

A municipal bond has 6 years until maturity and sells for $5,420. If the coupon rate on the bond is 6.6 percent, what is the yield to maturity? Please explain each step thoroughly

A 30-year maturity bond makes annual coupon payments and has a coupon rate of 8%. What...

A 30-year maturity bond makes annual coupon payments and has a coupon rate of 8%. What are the bond’s current yield and yield to maturity if the bond is selling for: a. $900 b. $1,000 c. $1,100 Recalculate yields in problem 1 assuming semiannual coupon payments.

A 30-year maturity bond making annual coupon payments with a coupon rate of 8% has duration...

A 30-year maturity bond making annual coupon payments with a coupon rate of 8% has duration of 11.37 years and convexity of 187.81. The bond currently sells at a yield to maturity of 9%. a. Find the price of the bond if its yield to maturity falls to 8%. (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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Today is T=0. A bond has a 6% coupon rate, annual payments and 8 years until...

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