a. Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and has a yield to maturity of 8%. Note: The face value of the bond is $1,000. (Do not round intermediate calculations. Round your answer to 3 decimal places.) > Answer is complete but not entirely correct. years 8% YTM 2.527 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 3 decimal places.) X Answer is complete but not entirely correct. 10% YTM 2.434 years

a. Find the duration of a 8% coupon bond making annual coupon payments if it has three years until maturity and has a yield to maturity of 8%. Note: The face value of the bond is $1,000. (Do not round intermediate calculations. Round your answer to 3 decimal places.) > Answer is complete but not entirely correct. years 8% YTM 2.527 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 3 decimal places.) X Answer is complete but not entirely correct. 10% YTM 2.434 years

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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2
A bond with a coupon rate of 8 percent sells at a yield to maturity of 7 percent. If the bond matures in 10 years, what is the Macaulay duration? Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
Vijay
aa.2
Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 7.9%. What is the duration if the yield to maturity is 11.9%? (Do not round intermediate calculations. Round your answers to 4 decimal places.) YTM 7.9% YTM 11.9% YTM Duration
K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): Period 0 2 Cash Flows $19.12 $19.12 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? a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) 39 $19.12
Assume that a bond will make payments every six months as shown on the following timeline (using six- month periods): Period 0 Cash Flows $20.87 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? 2 $20.87 *** a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) 39 $20.87 40 $20.87 + $1,000
Give only typing answer with explanation and conclusion
(Related to Checkpoint 9.4) (Bond valuation) A bond that matures in 8 years has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 16 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? Question content area bottom Part 1 a. The value of this bond if it paid interest annually would be $enter your response here. (Round to the nearest cent.) Part 2 b. The value of this bond if it paid interest semiannually would be $enter your response here. (Round to the nearest cent.)
1
A bond with a coupon rate of 7 percent sells at a yield to maturity of 8 percent. If the bond matures in 11 years, what is the Macaulay duration? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. Answer is complete but not entirely correct. 7.900 years Macaulay duration
Qc 2.

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