24. A P1M 6% annual coupon bond has been issued at a price of 95. Its maturity is 4 years. Answer the following: a. Compute the YTM for the bond. b. Compute the Macaulay Duration for the bond using the tabular form. C. Compute the Modified duration. deg?
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- Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 Price (%) 48 80.57 97.19 134.92 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Bond Coupon YTM (%) 2 4 6.00 % 7.42% 8 7.01 %24. A P1M 6% annual coupon bond has been issued at a price of 95. Its maturity is 4 years. Answer the following: a. Compute the YTM for the bond. b. Compute the Macaulay Duration for the bond using the tabular form. C. d. e. f. g. h. Compute the Modified duration. If the YTM goes to 6%, what is the new bond price? Using the YTM in letter a, what is the convexity of the bond? Assuming a 200 BP decline in YTM, what is the duration change? (use the modified duration in no. c) What is the convexity change? What is the combined effect of the duration change and convexity change? What will be the new price base on no. h? 25. There is a 25-year bond issued by the Republic of the Philippines last May 1, 2015 with a coupon of 8% paid out every May 1 and November 1. Answer the following questions: 1. Assuming that you wish to invest in this bond on May 1, 2020, when the prevailing interest rate is 9%, what is the purchase price for this bond? 2. What is the total investment for this bond if you…Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (8) 4 8 Price (1) 81.55 98.31 133.52 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Bond Coupon (%) 2 4 8 YTM 7.05% % %
- K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {A bond has the following terms: 1) $100 face value, 2) 3-year maturity and 3) 15% annual coupon rate. The bond's current yield-to-maturity is 10% per annum. Which one of the following answers is closest to the bond's duration? (Please round your calculation to the nearest 2nd decimal.) Select one: O a 2.55 years O b. 2.65 years OC 2.75 years O d. 2.85 years O e. 2.95 yearsA bond pays annual interest. Its coupon rate is 8%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 6%.The duration of this bond is _______ years. Group of answer choices A. 3.36 B. 3.23 C. 3.08 D. 3.59
- 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?You have a bond with the following features: - Semi-annual coupon payments. - Coupon rate 7.60%. - Face value $1,000. - 3.5 years to maturity. - Current market price $1,130. Requirements (A, B, and C are independent): 1. Calculate the duration and modified duration for this bond. Duration ___ Mduration ___ 2. Now, let’s assume the modified duration of this bond is 3 years. If the yield increases by 30 bps (basis points), what will the new price of the bond using modified duration? 3. If the yield drops by 75 bps, what is the actual new price of the bond?B. Directions: Compute for the following given statement and justify your answer. 1. Consider two bonds. Bond A has a face value of P100,000 and a stated rate of 12%. Bond B has a face value of P100,000 and a stated rate of 8%. Both bonds have the same maturity. Which bond has the greatest interest rate risk? 2. Consider two bonds. Bond X has a face value of P100,000 and five years remaining to maturity. Bond Y has a face value of P100,000 and ten years remaining to maturity. Both bonds have the same stated rate of 12%. Which bond has the greatest interest rate risk?
- Required: a. Find the duration of a 6.4% coupon bond making annual coupon payments if it has three years until maturity and has a yield to maturity of 6.4%. Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the duration if the yield to maturity is 10%? Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answer to 2 decimal places. a. 6.4% YTM b. 10% YTM years yearsAssume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100. Bond Coupon a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the duration of each bond? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 2 4 8 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Price (%) 80.50 97.11 135.02 Required A Complete this question by entering your answers in the tabs below. Bond Coupon (%) 2 4 8 Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. X Answer is complete but not entirely correct. YTM 4.95 X % 4.08 X % 5.92 X %