(a) Calculate the prices for bond B, C and D. (b) Calculate the duration for all bonds. (c) Calculate the duration adjusted for convexity for all bonds.

Consider four different bonds all having the same yield-to-maturity. Bond A is a consol that pays $50 every period forever and is currently priced at $714.29. Bond B, C and D have the same par value of $1,000. However, they differ in their maturity and coupon rate. Bond B and C have a maturity of 5 years, while bond D has a maturity of 10years. Also, bond B and D have a coupon rate of 6%, while bond C has a coupon rate of 8%. [Hint: Coupons are paid annually to faciliate the calculations. Hence, coupon rates are also given annually. You may want to resort to the annuity formula to make your life easier.]  a). Suppose the yield-to-maturity increases by 1%. Calculate the price changes on the individual bonds based on the two duration measures and based directly on the pricing formula. Compare your answers.b). Suppose the yield-to-maturity decreases by 1%. Calculate the price changes on the individual bonds based on the two duration measures and based directly on the pricing formula.…

You are trying to compare the interest rate risks of two bonds: (i) a 15-year 8% bond, and (ii) a 10-year 6% bond. Both bonds pay semi-annual interest payments. The current market interest rate for the 15-year bond is 7.2% and the market interest rate for the 10 year old bond is 5.8% a. determine the (macaulay) durations of the two bonds b. based on your findings in a and b which bond has a greater interest rate risk? explain. Please show excel solutions thank you!!

​(Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1,000 bonds pay 7  percent interest annually and have  9  years until maturity. You can purchase the bond for ​$885.   a. What is the yield to maturity on this​ bond? b. Should you purchase the bond if the yield to maturity on a​ comparable-risk bond is 10 ​percent?     a. The yield to maturity on the Saleemi bonds is  ​%. ​ (Round to two decimal​ places.)

You are considering two bonds, AMD and BBS. Both bonds are selling at par and pay the same amount of interest of $120 annually. Bond AMD will mature in 5 years while bond BBS will mature in 6 years. If the YTM on these two bonds increases by 1%, what do you expect to happen to their bond prices? • A. Both bond prices will increase, but BBS will increase more than AMD. • B. Both bond prices will decrease, but BBS will decrease more than AMD. • C. Both bond prices will increaks, but AMD will increase more than BBS. D. Both bond prices will decrease, but AMD will decrease more than BBS.   You observe the current yield curve as follows: r0.5=4%, r1=4.2%, r1.5=4.3%, and Г2=4.1%. What is the price of a T-note which has a coupon rate of 4%, 2 years to maturity, and $1,000 par? • A. $1,064.69 • B. $998.03 • C. $992.52 • D. $988.87   The interest rates on 3- and 2-year Treasuries are 2.35% and 2.20%, respectively. If you estimate that the 1-year expected spot rate in year 3 is 2.53%, what is…

Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 7 percent, has a YTM of 5 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 5 percent, has a YTM of 7 percent, and also has 13 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be one year from now? In four years? In nine years? In 11 years? In 13 years?