A 4-year bond pays an annual coupon of 10.5% based on a $1,000 par value and...
A 4-year bond pays an annual coupon of 10.5% based on a $1,000 par value and is selling to yield 7.5%. Use the excel duration function to determine the point in time when the bond's payment stream equals one-half the present value of cash flows.
a) Write the excel function entered.
b) Write the inputs into the excel function.
c) Duration =
Homework Answers
Part (a) Excel function entered = Duration (Settlement, maturity, Coupon, yield, frequency, basis)
Part (b) Inputs: Settlement: 4/20/2019; Maturity: 4/20/2023, Coupon: 10.5%, Yield: 7.5%, Frequency: 1, Basis: 0
Part(c) Duration = 3.49 years
Add Answer to:
A 4-year bond pays an annual coupon of
10.5% based on a $1,000 par value and...
A $1,000 par value bond pays an annual coupon of 10.0% and matures in 4 years....
A $1,000 par value bond pays an annual coupon of 10.0% and matures in 4 years. If the bond sells to yield 7%, what is the modified duration of this bond? a) The regular duration is: b) The modified duration is:
Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells...
Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells for $1,318. What's the bond's yield to maturity? o o 5.36% 5.68% o 6.75% o 7.85% A 10-year corporate bond has an annual coupon payment of 8%. The bond is currently selling at par ($1.000). Which of the following statement is NOT correct? The bond's yield to maturity is 8%. The bond's current yield is 8%. If the bond's yield to maturity remains constant,...
Today you purchase a coupon bond that pays an annual interest, has a par value of...
Today you purchase a coupon bond that pays an annual interest, has a par value of $1,000, matures in six years, has a coupon rate of 10%, and has a yield to maturity of 8%. One year later, you sell the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%. Your annual total rate of return on holding the bond for that year is ?
4. An annual payment bond with a $1,000 par has a 5% quoted coupon rate, a...
4. An annual payment bond with a $1,000 par has a 5% quoted coupon rate, a 6% promised yield to maturity and 6 years to maturity. What is the bond's duration? (1 point)
A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a...
A $1,000 par bond that pays interest semiannually has a quoted coupon rate of 7%, a promised yield to maturity of 5.8% and exactly 11 years to maturity. The present value of the coupon stream represents ______ of the total bond's value. (How can this be computed a BA-II Plus calculator?) A.) 53.8% B.) 51.4% C.) 50.3% D.) 52.5%
A 20 year, 8% semi-annual coupon bond with a par value of $1,000 may be called...
A 20 year, 8% semi-annual coupon bond with a
par value of $1,000 may be called in 10
years at a call price of $1,100. The bond sells for
$1,200.
e. How would the price of
the bond be affected by a change in the going market interest
rates?
Please show work ( by adding numbers or CELL with
formula if needed). Thank you, will rate.
L M N I e a A 20 year, 8% semi-annual coupon bond with...
A coupon bond pays annual interest, has a par value of $1,000, matures in 5 (five)...
A coupon bond pays annual interest, has a par value of $1,000, matures in 5 (five) years, has a coupon rate of 7.45%, and has a yield to maturity of 8.82%. The current yield on this bond is ________%. (2 decimal place)
Bond with: Par Value: $1,000 Maturity: 4 years Coupon Rate: 6% Current Annualized 6-month yield of...
Bond with: Par Value: $1,000 Maturity: 4 years Coupon Rate: 6% Current Annualized 6-month yield of 9%. Assume that coupon payments are made semiannually to bondholders and that the next coupon payment is expected in 6 months. 1.) What is the bond's duration (annualized)? Compare this with the approximate duration.
A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons...
A coupon bond with a par value of $1,000 and a 10-year maturity pays semiannual coupons of $21. (a) Suppose the yield for this bond is 4% per year compounded semiannually. What is the price of the bond? (b) Is the bond selling above or below par value? Why?
A coupon bond that pays interest annually has a par value of $1,000, matures in six...
A coupon bond that pays interest annually has a par value of $1,000, matures in six years, and has a yield to maturity of 11%. The intrinsic value of the bond today will be ________ if the coupon rate is 7.5%. A) $886.28 B) $851.93 C) $1,123.01 D) $1,000.00 E) $712.99
Analyze the 20-year, 8% coupon rate (annual payment), $1,000 par value bond. The bond currently sells for $1,318. What's the bond's yield to maturity? o o 5.36% 5.68% o 6.75% o 7.85% A 10-year corporate bond has an annual coupon payment of 8%. The bond is currently selling at par ($1.000). Which of the following statement is NOT correct? The bond's yield to maturity is 8%. The bond's current yield is 8%. If the bond's yield to maturity remains constant,...
4. An annual payment bond with a $1,000 par has a 5% quoted coupon rate, a 6% promised yield to maturity and 6 years to maturity. What is the bond's duration? (1 point)
A 20 year, 8% semi-annual coupon bond with a
par value of $1,000 may be called in 10
years at a call price of $1,100. The bond sells for
$1,200.
e. How would the price of
the bond be affected by a change in the going market interest
rates?
Please show work ( by adding numbers or CELL with
formula if needed). Thank you, will rate.
L M N I e a A 20 year, 8% semi-annual coupon bond with...
Most questions answered within 3 hours.
-
1. A motorcycle rider travels along a straight line with
constant velocity. He then throws a...
asked 11 minutes ago -
You are stopped at a red light at a freeway on-ramp. When the
light turns green,...
asked 10 minutes ago -
The freezing point of water H2O is 0.00°C at 1 atmosphere. How
many grams of manganese(II)...
asked 12 minutes ago -
explain the motives and methods for intrusion of the MS and Linux
operating systems
asked 11 minutes ago -
Are our social identities a) chosen for us or b) open to
negotiation? Pick a position...
asked 20 minutes ago -
A charge of -6 micro-coulombs is placed at the origin, a charge
of +7 micro-coulombs is...
asked 26 minutes ago -
What is the volume occupied by 0.254 mol of helium gas at 1.32
atm and 308...
asked 36 minutes ago -
The person in the drawing is standing on crutches. Assume that
the force exerted on each...
asked 40 minutes ago -
What’s in a name? A rose by any other name would smell
as sweet.” Although this...
asked 45 minutes ago -
A vending machine automatically pours soft drinks into cups. The
amount of soft drink dispensed into...
asked 48 minutes ago -
4. Atom hybridization changes in many chemical reactions. In
each of the following reactions, determine what...
asked 51 minutes ago -
1) Action potential
a) Explain how an action potential moves down a cell wall. Be
very...
asked 53 minutes ago