A 3 year bond has annual coupons of 6.5%, and a face/redemption value of $100. If...
Problem #6: A 3 year bond has annual coupons of 7.5%, and a face/redemption value of $100. If the bond YTM is 7.75%, find the Macauley duration for the bond.
Problem #2: A bond has a face value (and redemption value) of $504,000, and pays coupons annually. The effective annual yield is 3 times the coupon rate. The present value of the redemption amount is 3 times the present value of the coupon stream. What is the price of the bond?
A 3 year, 1000 par value bond has 8% annual coupons and an annual effective yield of 7%. Find the Macaulay duration of this bond.
A bond with a redemption value of £100 pays coupons of £1.50 semi-annually (i.e. the bond holder receives £1.50 twice per year), with the first coupon due in half a year. The bond will mature in ten years’ time. It is currently selling for £95.25. By using interpolation method, compute the redemption yield (annual effective).
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Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam? Of Bond Dave? If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price...
Problem #5: A 10-year bond has face value (redemption value) $450,000 and quarterly coupons of 2.5%. Consider the time right after the 12th coupon has been paid, when the yield is 4.4%. (a) What is the price of the bond? (b) Compute the price of the bond if the yield were to increase by 1 basis point (a basis point is 1/100 of 1%). What is the absolute value of the difference between that price, and your answer to part...
A T-bond with semi-annual coupons has a coupon rate of 3%, face value of $1,000, and 2 years to maturity. If its yield to maturity is 4%, what is its Macaulay Duration? Answer in years, rounded to three decimal places
2. * A bond with a redemption value of £100 pays coupons of £1.50 semi-annually (i.e. the bond holder receives £1.50 twice per year), with the first coupon due in half a year. The bond will mature in ten years' time. It is currently selling for £95.25. (a) Without making any calculations can you determine what is greater between the redemption yield and the interest yield? Why? (b) Compute the redemption yield (annual effective)?
Problem #5: A 10-year bond has face value (redemption value) $250,000 and quarterly coupons of 390 Consider the time righi after the 12th coupon has been paid, when the yield is 4.4%. (a) What is the price of the bond? (b) Compute the price of the bond if the yield were to increase by 1 basis point (a basis point is l/100 of i%) What is the absolute value of the difference between that price, and your answer to part...
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?