None What is the duration (D) of acorporate bond with coupon rate of8.94%, if the market rate is currently4.43% and the term is five years (assume the face value is $1,000)?Please enter your response to thenearest 100th of a year (for instance4.56 years).

Part 2:Explanation:Step 1: Calculate the present value of the bond's cash flows.The bond pays a…

Answered: What is the duration (D) of a corporate…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

What is the Macaulay duration of a bond with a coupon of 7.2 percent, five years to maturity, and a current price of $1,027.60? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration Years Years
What is the Macaulay duration of a bond with a coupon of 4.8 percent, six years to maturity, and a current price of $1,048.40? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration Years Years
What is the approximate price of a bond that matures in two years (T= 2), with a face value of $1000 (F= $1000), and an annual coupon payment of $50 (C = $50), if the interest rate is 6 percent? $1056.67 $1100.00 $876.33 $981.67
What is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures in 10 years? Assume a required rate of return of .0702. Instruction: Type your answer in dollars, and round to two decimal places.
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What is the Macaulay duration of a 7 percent semiannual coupon bond with two years to maturity and a current price of $1,055.30? (Note: You are required to solve the problem by calculating "Years \times PV / Bond Price" for each cash flow and summing the results. YTM and PV must be calculated using a financial calculator. Round your answer to four decimal places.)
What is the Macaulay duration of a bond with a coupon of 8.6 percent, twelve years to maturity, and a current price of $1,043.70? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration Years Years
Suppose a bond is priced at $1108, has 18 years remaining until maturity, and has a 8% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)? $__________.
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Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. b. What is the total (6-month) rate of return on the bond? Complete this question by entering your answers in the tabs below. Required A Required B Find the bond's price today and six months from now after the next coupon is paid. Note: Round your answers to 2 decimal places. Current price Price after six months $ $ 1,052.42 1,044.52
What is the duration of the following bond:$1,000par value,6%annual coupon, 4 years to maturity, and yield to maturity of6.5%? You will need your answer for the next question. In the prior question, what is the present value of the bond?

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What is the duration (D) of a corporate bond with coupon rate of 8.94%, if the market rate is currently 4.43% and the term is five years ( assume the face value is $1,000)? Please enter your response to the nearest 100th of a year (for instance 4.56 years).