Question

In: Finance

What is the duration of a par bond with an annual 8% coupon with exactly 5...

What is the duration of a par bond with an annual 8% coupon with exactly 5 years to maturity? Please enter your answer in years rounded to two decimal places.

Solutions

Expert Solution

Duration is 4.31 years


Related Solutions

2) a. What is the duration of a 5-year 8% annual coupon bond with a par...
2) a. What is the duration of a 5-year 8% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 10%? b. What is the duration of a 5-year 12% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 10%? What does this tell you about the relationship between coupon rates and duration? Comment. c. What is the duration of a 5-year 8% annual coupon...
What is the duration of an 8% annual coupon bond with a par value of $1000...
What is the duration of an 8% annual coupon bond with a par value of $1000 that matures in 3 years? YTM on alternative investments is 10 %
What is the duration of a $1,000 par annual bond with an eight percent annual coupon...
What is the duration of a $1,000 par annual bond with an eight percent annual coupon maturing in five years given a yield to maturity of five percent? What is the duration of a $10,000 par semi-annual bond making payments of $300 semi-annually maturing in five and a half years given a yield to maturity of seven percent?
What is the duration of a 5 year, 8% semi-annual coupon bond with a face value...
What is the duration of a 5 year, 8% semi-annual coupon bond with a face value of $1,000 that is currently selling at a YTM of 10%?
a. What is the duration of a 5-year 8% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 10%?
  a. What is the duration of a 5-year 8% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 10%? b. What is the duration of a 5-year 12% annual coupon bond with a par value of $100 if the prevailing continuously compounded interest rate is 10%? What does this tell you about the relationship between coupon rates and duration? Comment. c. What is the duration of a 5-year 8% annual coupon...
A 5-year 10% annual coupon bond is trading at par. when we calculate the duration of...
A 5-year 10% annual coupon bond is trading at par. when we calculate the duration of this bond ___% is the weight of the first coupon that will be paid one year from today
What is the duration of a 2 year bond that pays a 5% annual coupon with...
What is the duration of a 2 year bond that pays a 5% annual coupon with a 9% YTM? Use $1000 as the face value of the bond. Using the duration, what is the expected change in the bond if rates are expected to drop by 25 basis points?
6. What is the duration of a two-year bond that pays an annual coupon of 5%,...
6. What is the duration of a two-year bond that pays an annual coupon of 5%, returns the face value, and has a current yield to maturity of 4.5%. Use $1000 as the face value. (show the calculation, so i can study) 7. What is the duration of a two-year zero-coupon (principal-only) bond that is yielding 6% and $10,000 face value? Note: This bond does not have coupon payments but does return the face value. (show the calculation, so i...
Find the duration of a 3-year bond with annual coupon payments of $80 and a par...
Find the duration of a 3-year bond with annual coupon payments of $80 and a par value of $1,000. The current market price of the bond is $950.25. If the YTM of the bond dropped by 1%, what would happen to the bond price? NOTE: please help especially on the duration part
The duration of a bond with 8% annual coupon rate when the yield to maturity is...
The duration of a bond with 8% annual coupon rate when the yield to maturity is 10% and two years left to maturity is: Question 10 options: 1) 1.75 years 2) 1.80 years 3) 1.92 years 4) 2.96 years
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT