What is the duration of a bond with two years to maturity if the bond has...
What is the duration of a bond with two years to maturity if the bond has a coupon rate of 7.5 percent paid semiannually, and the market interest rate is 5.5 percent? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Duration
Homework Answers
to calculate the duration , firstly calculate all the semi-annual parameters of the bond : semi-annual market rate, semi-annual coupon value,
Then we will create a table from which we will calculate the duration of the bond
duration = sum of product of cash flow weights and time period of each cash flow
Add Answer to:
What is the duration of a bond with two years to maturity if the
bond has...
What is the duration of a bond with three years to maturity and a coupon of...
What is the duration of a bond with three years to maturity and a coupon of 7.1 percent paid annually if the bond sells at par? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Duration
What is the duration of a bond with three years to maturity and a coupon of...
What is the duration of a bond with three years to maturity and a coupon of 8.4 percent paid annually if the bond sells at par? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)
What is the duration of a bond with four years to maturity and a coupon of...
What is the duration of a bond with four years to maturity and a coupon of 8.9 percent paid annually if the bond sells at par? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)
A bond has 8 years until maturity, has a coupon rate of 8%, and sells for...
A bond has 8 years until maturity, has a coupon rate of 8%, and sells for $1,100. . What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) Current yield b. What is the yield to maturity of interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) Yield to maturity c. What is the yield to maturity if...
A 30-year maturity bond making annual coupon payments with a coupon rate of 7.5% has duration...
A 30-year maturity bond making annual coupon payments with a coupon rate of 7.5% has duration of 12.27 years and convexity of 216.28. The bond currently sells at a yield to maturity of 8%. e-1. Find the price of the bond if its yield to maturity increases to 9%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) e-2. What price would be predicted by the duration rule? (Do not round intermediate calculations. Round your answers to...
Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturity.
Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturity. The yield to maturity on this bond is 4.1 percent. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. What is the duration of a two-year bond that pays an annual coupon of 12...
a. What is the duration of a two-year bond that pays an annual coupon of 12 percent and whose current yield to maturity is 16 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) Duration of a bond b. What is the expected change in the price of the bond if interest rates are expected to increase by 0.3 percent? (Negative amount should be indicated by a minus...
Consider the following. a. What is the duration of a two-year bond that pays an annual...
Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 11 percent and whose current yield to maturity is 12 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.2 percent? (Negative amount should be indicated by a minus sign....
4. Consider the following. a. What is the duration of a two-year bond that pays an...
4.
Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 10 percent and whose current yield to maturity is 14 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.7 percent? (Negative amount should be indicated by a minus...
Consider the following. a. What is the duration of a two-year bond that pays an annual...
Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 12 percent and whose current yield to maturity is 13 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to increase by 0.6 percent? (Negative amount should be indicated by a minus sign....
What is the duration of a bond with three years to maturity and a coupon of 7.1 percent paid annually if the bond sells at par? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Duration
A bond has 8 years until maturity, has a coupon rate of 8%, and sells for $1,100. . What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) Current yield b. What is the yield to maturity of interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) Yield to maturity c. What is the yield to maturity if...
Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 11 percent and whose current yield to maturity is 12 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.2 percent? (Negative amount should be indicated by a minus sign....
4.
Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 10 percent and whose current yield to maturity is 14 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to decrease by 0.7 percent? (Negative amount should be indicated by a minus...
Consider the following. a. What is the duration of a two-year bond that pays an annual coupon of 12 percent and whose current yield to maturity is 13 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) b. What is the expected change in the price of the bond if interest rates are expected to increase by 0.6 percent? (Negative amount should be indicated by a minus sign....
Most questions answered within 3 hours.
-
You purchase your daily coffee at the Chemist’s Coffeehouse and
have a choice of two cups:...
asked 47 minutes ago -
Which of the following pairs of chemicals could be used to make
a buffer solution?
A.)...
asked 34 minutes ago -
Problem 16-51 Sales
Activity Variance (LO 16-3)Odessa, Inc., reports the following
information concerning operations for the...
asked 1 hour ago -
Pictured on the right are thee point charges Q1 = 18.4 μC, Q2 =
-30.6 μC,...
asked 1 hour ago -
A graduate student is conducting research in psychology and
needs to obtain the IQ scores of...
asked 1 hour ago -
R2.84: There are 2 defective products in a production lot of 10.
An inspector randomly selected...
asked 3 hours ago -
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 3 hours ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 3 hours ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 4 hours ago -
1. In eukaryotic cells the genomes of
&
asked 4 hours ago -
The standard enthalpy of propanol (C3H7OH) is -303.0 kJ/mol.
Compute both of the
gross and net...
asked 4 hours ago -
Why PWM using H-bridge for control motor speed is more power
effiecient than the linear amplifier...
asked 5 hours ago