calculate the duration of an 8 percent coupon bond with a 3-year maturity and a face...

Question

Question

calculate the duration of an 8 percent coupon bond with a 3-year maturity and a face value of $1000 when the YTM on similar bond is 6%

Answer 1

Answer #1

year Cash floss CY from Bond presentvalue weight present Volue Factoy (6/) O.0716 80 O.6716 Oi9434 75.47 (5.47 TO53.97 2 O135

Answer 2

Similar Homework Help Questions

Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons...

Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons are paid semiannually. The yield to maturity is 6% and the face value of the bond is $1000.
Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons...

Calculate the duration for a 2-year bond which has a 8% annual coupon rate, and coupons are paid semiannually. The yield to maturity is 6% and the face value of the bond is $1000.
Calculate duration on a ten-year, $1,000 face-value, 10% coupon bond when its yield to maturity is...

Calculate duration on a ten-year, $1,000 face-value, 10% coupon bond when its yield to maturity is 20%. Show all of your work in a table showing cash payments, present value of cash payments and weighted maturity of those cash payments.

Find the duration of a 8% coupon bond making annual coupon payments if it has 3 years until matur...

Find the duration of a 8% coupon bond making annual coupon payments if it has 3 years until maturity and has a yield to maturity of 10%. Note: The face value of the bond is $1,000. (Do not round intermediate calculations. Round your answers to 3 decimal places.) 10% YTM: Duration = ________ years
A 33-year maturity bond making annual coupon payments with a coupon rate of 15% has duration of 10.8 years and convexity of 1916 . The bond currently sells at a yield to maturity of 8% Required (a) F...

A 33-year maturity bond making annual coupon payments with a coupon rate of 15% has duration of 10.8 years and convexity of 1916 . The bond currently sells at a yield to maturity of 8% Required (a) Find the price of the bond if its yield to maturity falls to 7% or rises to 9%. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Yield to maturity of 7% Yield to maturity of 9% (b)...
Consider a bond with two year remaining to maturity, a $1,000 face value, an 8 percent...

Consider a bond with two year remaining to maturity, a $1,000 face value, an 8 percent coupon rate (paid annually), and an interest rate (either required rate of return or yield to maturity) of 10 percent. How much is the modified Duration of the bond in years? 1.55 1.65 1.75 1.85 1.95 2 2.01 2.11 3 4

Consider a 2-year coupon bond that pays coupon annually with a coupon rate of 3%, face...

Consider a 2-year coupon bond that pays coupon annually with a coupon rate of 3%, face value $1000, a yield to maturity of 4%. (a) What is the approximated bond price estimated by both duration and convexity if the yield is increased by 0.5%? (b) Suppose you purchased 1 unit of the above coupon bond mentioned above and is worried if the interest rate will increase. You are considering taking short position on a zero coupon bond. The zero coupon...
You have purchased a bond with 6 year maturity, 6% coupon rate, $1000 face value, and...

You have purchased a bond with 6 year maturity, 6% coupon rate, $1000 face value, and semi-annual payments for $975.48. Two years later, when the YTM=7.2%, you sell the bond. What was your average annual realized yield on the bond, if you were able to reinvest coupons at 6.5%? [Provide your answer in percent rounded to two decimals, omitting the % sign.]
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual...

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?

Find the duration of a 5.0% coupon bond making semiannually coupon payments if it has three...

Find the duration of a 5.0% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 6.0%. What is the duration if the yield to maturity is 8.0%? Note: The face value of the bond is $100. (Do not round intermediate calculations. Round your answers to 4 decimal places.) 6% YTM Years 8% YTM Years