Question
In: Finance
A Tesla bond with 7 years to maturity has a price of $725.43 and a coupon...
A Tesla bond with 7 years to maturity has a price of $725.43 and a coupon rate of 10%. It makes annual coupon payments. What is the bond’s duration? Note: Report up to two decimal places.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A Tesla bond with 8 years to maturity has a price of $579.28 and a coupon...
A Tesla bond with 8 years to maturity has a price of $579.28 and
a coupon rate of 7%. It makes annual coupon payments. What is the
bond’s duration?
Calculate the price of this bond: Yield = 5.55%, Time to maturity = 7 years, Coupon...
Calculate the price of this bond: Yield = 5.55%, Time to
maturity = 7 years, Coupon rate = 4.6%, Pays = annually.
948.85
990.87
690.83
946.11
None of the above
Consider a bond that has a coupon rate of 7%, three years to maturity, and is...
Consider a bond that has a coupon rate of 7%, 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
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?
Bond A has a 7% coupon rate, paid annually. Maturity is in three years. The bond...
Bond A has a 7% coupon rate, paid annually. Maturity is in three
years. The bond sells at par value &1000. The actual price of
the bond if the interest rate immediately decreases from 7% to 6%
is ____.
A. 1027.25
B. 1026.68
C. 1026.73
D. 1026.73
Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a...
Bond X is noncallable and has 20 years to maturity, a 7% annual
coupon, and a $1,000 par value. Your required return on Bond X is
10%; if you buy it, you plan to hold it for 5 years. You (and the
market) have expectations that in 5 years, the yield to maturity on
a 15-year bond with similar risk will be 11%. How much should you
be willing to pay for Bond X today? (Hint: You will need to...
Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a...
Bond X is noncallable and has 20 years to maturity, a 7% annual
coupon, and a $1,000 par value. Your required return on Bond X is
9%; if you buy it, you plan to hold it for 5 years. You (and the
market) have expectations that in 5 years, the yield to maturity on
a 15-year bond with similar risk will be 10.5%. How much should you
be willing to pay for Bond X today? (Hint: You will need to...
Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a...
Bond X is noncallable and has 20 years to maturity, a 7% annual
coupon, and a $1,000 par value. Your required return on Bond X is
11%; if you buy it, you plan to hold it for 5 years. You (and the
market) have expectations that in 5 years, the yield to maturity on
a 15-year bond with similar risk will be 9.5%. How much should you
be willing to pay for Bond X today? (Hint: You will need to...
Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a...
Bond X is noncallable and has 20 years to maturity, a 7% annual
coupon, and a $1,000 par value. Your required return on Bond X is
12%; if you buy it, you plan to hold it for 5 years. You (and the
market) have expectations that in 5 years, the yield to maturity on
a 15-year bond with similar risk will be 9.5%. How much should you
be willing to pay for Bond X today? (Hint: You will need to...
An 8% coupon bond with 3 years to maturity has a yield of 7%. Assume that...
An 8% coupon bond with 3 years to maturity has a yield of 7%.
Assume that coupon is paid semi-annually
and face value is $1,000.
(a) Calculate the price of the bond. (Keep 2 decimal places,
e.g. 90.12)
(b) Calculate the duration of the bond. (Keep 4 decimal places,
e.g. 5.1234)
(c) Calculate this bond's modified duration. (Keep 4 decimal
places, e.g. 5.1234)
(d) Assume that the bond's yield to maturity increases from 7% to
7.2%, estimate the new price...
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