A $4,000 bond with a 3% coupon compounded semi-annually is
currently priced to yield 8% with...
A $4,000 bond with a 3% coupon compounded semi-annually is
currently priced to yield 8% with 19 years remaining to maturity.
What is the yield to maturity five years from now if the bond price
rises $225 at that time?
A five-year bond with a yield of 11% (compounded annually) pays
an 8%
coupon at the end of each year.
(a) What is the bond’s price?
(b) What is the bond’s duration?
(c) Use the duration to calculate the effect on the bond’s price
of a 0.2% de-
crease in its yield.
(d) Recalculate the bond’s price on the basis of a 10.8% per
annum yield and
verify that the result is in agreement with your answer to
(c).
Face...
Consider a 3-year bond with 14 percent semi-annual coupon
payments and currently priced to yield 12 per cent per annum.
Calculate duration of the bond.
What is the percentage of price change if interest rate
increases to 12.15% per annum?
Consider a 3-year bond with 14 percent semi-annual coupon
payments and currently priced to yield 12 per cent per annum.
Calculate duration of the bond.
What is the percentage of price change if interest rate
increases to 12.15% per annum?
Holly bought a 7-year bond, with a 3% coupon paid semi annually.
It was priced to yield 3% when she bought it. What is the effective
duration assuming a 100-basis point change in interest rates?
Consider a 4-year bond with 12 percent semi-annual coupon
payments and currently priced to yield 10 per cent per annum.
Calculate duration of the bond.
Bond
Coupon Rate
Maturity
Price Per $100 Face Value
Yield to Maturity- annual rate, compounded
semi-annually
Vermeero
4%
5 years
???
6.00%
Renwaro
0%
5.5 years
74.1993
????
a) Draw a diagram showing the cash flow for each of the
bonds
b) Calculate the price of the Vermeero bond
c) Calculate the yield to maturity for the Renwaro bond
d) Suppose you purchase the Renwaro bond today. You plan to sell
this bond one year from now, and you forecast...
Bond
Coupon Rate
Maturity
Price Per $100 Face Value
Yield to Maturity- annual rate, compounded
semi-annually
Vermeero Enterprises
4%
5 years
???
6.00%
Renwaro Company
0%
5.5 years
74.1993
????
a) Draw a diagram showing the cash flow for each of the
bonds
b) Calculate the price of the Vermeero bond
c) Calculate the yield to maturity for the Renwaro bond
d) Suppose you purchase the Renwaro bond today. You plan to sell
this bond one year from now, and...
A $5000 semi-annual coupon bond paying interest at 12.4%/year
compounded semi-annually is redeemable at par in 16 years. It is
callable at 115 at the end of 8 years and at 111 at the end of 11
years. Determine the price to guarantee a yield rate of 13.4%/year
compounded semi-annually.
25 years ago, Mini Max Inc. issued 30 year to maturity
zero-coupon bonds with a par value of $1,000. Now the bond has a
yield to maturity of 14.94 percent, compounded semi-annually. What
is the current price of the bond? Round the answer to two decimal
places.
Consider a zero coupon bond with three years to maturity, and is
currently priced to yield 5%. Calculate the following: Macaulay
duration Modified duration Percentage change in price for a 1%
increase in the yield to maturity