A 14-year zero coupon bond with a face value of $1,000 is currently selling for $44.6. Using the bond's modified duration, what is the approximate %age change in the price of the bond if interest rates rise by 76 basis points?
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A 14-year zero coupon bond with a face value of $1,000 is currently selling for $44.6. Using the bond's modified duration, what is the approximate %age change in the price of the bond if interest rates rise by 76 basis points?
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- A 15-year Treasury bond is issued with face value of $1,000, paying interest of $46 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (Enter your answer as a percentage rounded to 1 decimal place.) Coupon rate ?%The duration of a 20-year, 8 percent coupon Treasury bond selling at par is 10.34 years. The bond’s interest is paid semiannually, and the bond qualifies for delivery against the Treasury bond futures contract. What is the modified duration of this bond? What is the impact on the Treasury bond price if market interest rates increase 50 bps?A 15-year Treasury bond is issued with face value of $1,000, paying interest of $58 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (
- how does the equation for valuing a bond change if semiannual payments are made? find the value of a 10-year, semiannual payment, 10% coupon bond if nominal rd equal 13%.How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment, 10% coupon bond if nominal rd = 13%.A one-year zero coupon bond costs $99.43 today. Exactly one year from today, it will pay $100. What is the annual yield-to-maturity of the bond? (1.e., what is the discount rate one needs to use to get the price of the bond given the future cash flow of $100 in one year?) 1.0057 0.0057 2.0057 -0.0057
- A bond has a par value of $1,000, a time to maturity of 15 years, and a coupon rate of 7.80% with interest paid annually. If the current market price is $780, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged? (Do not round intermediate calculations. Round your answer to 2 decimal places.)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)? $__________.A bond has 10 years until maturity, a coupon rate of 9%, and sells for $1,100. Interest is paid annually. (Assume a face value of $1,000.) If the bond has a yield to maturity of 9% 1 year from now, what will its price be at that time? Note: Do not round intermediate calculations. What will be the rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign. If the inflation rate during the year is 3%, what is the real rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.
- Example: You buy a 10-year maturity bond for the face value of $1,000 when the current interest rate is 9%. A year later, you sell the bond for $980. Assuming annual coupon payment, a. What is the new yield to maturity on the bond when you sell the bond? b. What's your holding period return during the year?What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to maturity, and a current price of $959? What is the modified duration? Duration is __. years. Modified duration is __ years.Consider a bond that has a face value of $1,000. The bond has a maturity of 25 years and pays coupons of 5.5% per annum. If the bond's required rate of return is 8.0% per annum nominal, and coupons are received semi-annually, what is the current market price of the bond?
