Consider a four year annual bond paying a 7% coupon, with a yield to maturity of 6.0%. What is the duration of the bond? Multiple Choice 3.631 3.785 3.814 3.965
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- Consider the following par bond (ie coupon rate=yield):Maturity: 1 2 3 4 5YTM: 5%; 4.5%; 4%; 3.5%; 3.2% Q4. Price a 5 year 2% coupon bond. What is the YTM for the bond2. Consider a bond with a 7.5% annual coupon rate and a face value of $1,000. Calculate the bond price and duration & show your work. Years to Maturity Interest rate Bond Price Duration 4 6. 6. 9. What relationship do you observe between yield to maturity and the current market value? What is the relationship between YTM and duration?Consider a risk-free zero-coupon bond with face value $1000, 20 years to maturity. If the yield to maturity (YTM) is 6%, the price at which this bond will trade is closest to: A. $167.44 B. $312 C. $214.55 D. $174
- 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?Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of this bond is 5.1%, then the price of this bond is closest to: OA. $61.00 OB. $85.13 OC. $100.00 OD. $72.97 -- 4 Q Search Time RemConsider a bond with a face value of $1,000 that sells for an initial price of $700. It will pay no coupons for the first nine years and will then pay 11% coupons for the remaining 29 years. Choose an equation showing the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity. O A. B. O C. O D. 700 = 700 = 700 = 700 = 110 110 9 (1+i)⁹ (1+i)⁹+1 + 110 + i) ⁹ + 1 (1 + 1,000 (1+i) 29-9 1,000 (1 + i) 9 +29 + +...+ 110 (1+i) 9+2 + 110 (1 + i)9+29-1 110 + (1 + i) ⁹ + 110 (1+i)9 +29 9+29-1 + 110 (1 + i)9 +29 + 1,000 (1+i) 9+29
- Use the following information for the questions. Assume 4-year annual coupon bond with coupon interest rate = 8%. Yield to maturity =8% and face value =1000 $. 6-1) Calculate intrinsic value of this bond. A> $1000 t CF PV factor PV(CF) 1 80.0000 0.9259 74.0740 2 80.0000 0.7938 68.5871 3 4 80.0000 1080.0000 0.7350 63.5071 793.8841 value 1000. 6-2) Explain the concept of modified duration and calculate it for the above bond.Suppose a bond with a 12% coupon rate and semiannual coupons, has a face value of $1,000, 10 years to maturity and is selling for $1,197.93. Calculate: A. Current yield, and B. YTM if the price of the bond in one year is $2,014.83 STEPS MAY INCLUDE USE OF FINANCIAL CALCULATOR (BA 2 PLUS)Suppose a bond with a 14% coupon rate and semiannual coupons with 12% YTM and has a face value of $1000, 10 years to maturity. What is the price of the bond? Is this a premium or discount bond?
- Consider a 25-year bond with a face value of $1,000 that has a coupon rate of 5.8%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ *** (Round to the nearest cent.)← Suppose a ten-year, $1,000 bond with an 8.6% coupon rate and semiannual coupons is trading for $1,034.51. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.7% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)There are three bonds that mature at the same time, have the same par value, and are expected to pay their first annual coupon 1 next year. The bonds are detailed in the below table. Bond A B с PV PV PV Present Value B ? ? ? PV B If ca r, then what can we say about the prices of the bonds today? (Enter >, <, or ?) PV C PV Yield to Maturity C r rb Coupon Rate ca с с