what is the bond's approximate modified duration

Q: Consider a bond with a principal of $1,000 that pays a coupon of $100 per year. If the bond matures…

A: Bond: It is a fixed income instrument that represents a loan made by an investor to a borrower. We…

Q: What is the bond's coupon rate?

A: Bond Coupon Rate: It refers to the yield rate paid by the issuer to the bondholder. It is estimated…

Q: Assume a 2 year, 5 year, 10 year and 30 year bond all pay a coupon rate of 4%. Test how the bond…

A: Bonds are debt instruments issued by companies. They pay periodic coupons or interests to the bond…

Q: n-paying bond matures exactly 10 years and 4 months from now. Find the bond’s coupon rate if a…

A: Given question : Time period (years) 10.4 Future price 121 Current price 119 Interest rate…

Q: An investor wants to find the duration of a(n) 15-year, 5% semiannual pay, noncallable bond that's…

A: The problem requires the calculation of bond price with the given level of coupon rate and discount…

Q: What is the fair price of a bond assuming that the annual rate is 2.42% if its face value is Php…

A: Answer: Calculation of the fair price of the bond: The fair price of the bond will equal to the…

Q: There is a goverment bond that pays %16 annual coupon interest however the payments are…

A: The price of the bond refers to the present value of all the future cash flows of that respective…

Q: A bond pays coupons annually, has a yield-to-maturity of 5%, and a duration of 6 years. What is this…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: A bond has an annual coupon rate of 4.3%, a face value of $1,000, a price of $1,186.68, and matures…

A: COUPON RATE = 4.3% FACE VALUE = $1000 PRICE = $1186.68  N = 10

Q: A bond has a coupon rate of 8.1 percent and 5 years until maturity. If the yield to maturity is 11.3…

A: The price of the bond is calculated as present value of cash flows.

Q: A bond matures in 5 years and pays a 6.00% annual coupon. The bond has a face value of $1,000 and…

A: concept. 1. current yield of bond = Interest * 100current price of bond   2. yield to maturity of…

Q: Consider that you have in your portfolio a 3-year 3% coupon bond with face value of $100. The…

A: The duration of a Bond : is a measurement of the average term-to-maturity of that bond. In simple…

Q: Assume semi-annual payments. A bond has a coupon rate of 2.8% when yields are 4.33%. If the bond has…

A: Bond price is the present discounted value of its expected cash flow at the given interest rate. A…

Q: A par bond has a yield to maturity of 5.8% and pays coupons semi-annually.  What is the coupon…

A: The coupon rate are fixed payment that are done to bond holders . As these are investment for the…

Q: A coupon-paying bond matures exactly 10 years and 4 months from now. Find the bond’s coupon rate if…

A: The coupon rate is the annual income an investor may anticipate to earn from a bond. It is…

Q: You find a zero bond with a par value of $10,000 and 23 years to maturity. The yield to maturity on…

A: The zero-coupon bonds are the bonds under which the company needs to repay the borrowings at the…

Q: Consider an annual bond with a coupon rate of 10 percent, four years to maturity, and a current…

A: Duration: Duration is used to measure the change in the bond's price for a given change in interest…

Q: What is a discount ask yield on a bond? if the bond is priced at 1,000 and 80 days to maturity and…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: A bond has an annual coupon rate of 3.5%, a face value of $1,000, a price of $1,025.33, and matures…

A: Bond's YTM = 3.2%Explanation:YTM = [ C + (F - P) / n ] / ( F + P) / 2 )​​Where:C = annual coupon…

Q: You find a bond with 28 years until maturity that has a coupon rate of 7 percent and a yield to…

A: A bond indicates a debt instrument that obligates its issuer to repay the par value along with a…

Q: The 1-year spot rate is 6%, the 2-year spot rate is 7%. The Treasury plans to issue 2-year maturity…

A: Bond is a debt security that is issued by organizations to raise debt funds from public and…

Q: Consider the following par bond (ie coupon rate=yield): Year: 10 and 20 years . Yld 1.50% and 2.0%…

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

Q: You see a bond with the following characteristics: bond matures in 10 years coupon rate = 7% APR…

A: Time period of bond maturity i 10 years Coupon rate is 7% APR compounded semi-annually Coupon…

Q: A 10-year maturity bond making annual coupon payments with a coupon rate of 5% and currently selling…

A: Bonds: These are interest-paying securities that are issued by a corporation or the government to…

Q: A bond has 4-years left to maturity and offers a 5.5% coupon rate paid annually. The bond is priced…

A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…

Q: Compare the bond price risk of two bonds with an annual coupon rate of 5%, each  having distinct…

A: Bonds are debt instruments issued by companies. The issuing company borrows money from people though…

Q: A bond is issued with a coupon rate of 6% (paid out semi-annually), a maturity of 19 years and a…

A: Price of bond is present value of coupon payment plus present value of par value of the bond.

Q: rate of return of the bond? W

A: Bond price refers to the amount which an investor is willing to pay at the time of existence of…

Q: A 5-year bond that pays interest semiannually has a 7% coupon and an 8% quoted yield to maturity.…

A: A bond is a fixed income security that offers the investor a continuous set of fixed periodic…

Q: A bond has an annual coupon rate of 4.1%, and has 4 years until maturity. If the bonding trading at…

A: Let face value of Bond be $1000   Annual coupon  = Face value of bond * Coupon rate = $1000 * 4.1% =…

Q: Calculate the duration (and price) of a bond with the following characteristics: A semi-annual…

A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…

Q: Calculate the duration (and price ) of a bond with the following

A: The current price of a bond is the price which can be paid for the purchase of the bond. It is also…

Q: Compute the modified duration

A: Duration of the bond = 7.88 years Yield to maturity (YTM) = 4.5%.  Formula for calculation of…

Q: coupon

A: The general equation for bond price is P = C/(1+d)^n + F/(1+d)^n If semi annual payments are made,…

Q: Suppose a five-year bond with an 8% coupon rate and semi-annual compounding is trading for a price…

A: Variables in the question:FV=£ 1000 (assumed)N=5 yearnper=5 year *2=10Coupon rate=8%Semi-annual…

Q: A bond has a coupon rate of 4.2% when yields are 3.16%.  Coupon are paid semi-annuallly.  If the…

A: Let's assume par value of the bond is $1000.Semiannual coupon amount (C) = $21 (i.e. $1000 * 0.042 /…

Q: Suppose the real risk-free rate of interest is 2%. Inflation is expected to be 2% for 2 years and…

A: The nominal interest rate on a bond is the stated rate of interest that the issuer agrees to pay to…

Q: A bond has an annual coupon rate of 4.4%, a face value of $1,000, a price of $1,147.26, and matures…

A: Coupon rate = 4.4% Face value = fv = $1000 Price of the Bond = pv = $1147.26 Time = nper = 10 years…

Q: The bond's duration is the sum of the present value of each payment weighted by the time period in…

A: Solution5. Calculate the Present Value Interest Factor (PVIF) at 7% for Year 5:

Q: You purchase a bond with an invoice price of $1,170. The bond has a coupon rate of 7.2 percent, and…

A: When the amount of accrued interest is deducted from the invoice price of the bond then the price of…

Q: uppose a 6-year zero-coupon bond offers a payment of $1,800 and the current market interest rate for…

A: A zero-coupon bond is a bond that does not pay interest but is traded at a deep discount.

Q: Calculate the duration of a 7-year coupon bond having a 11% coupon rate. The current market yield of…

A: Assuming Face value of bond = 1000 N = 7 years Coupon = Coupon Rate * Face Value = 11%*1000 = 110…

Q: calculate the price of a $1,000, 5% bond with 4 years to maturity with 6.5 % market interest rates.…

A: Par Value of Bond is 5% Coupon rate is 5% Time to maturity is 4 years Market interest rate is 6.5%…

Q: You have purchased a bond for $973.02. The bond has a coupon rate of 6.4%, pays interest annually,…

A: Given: Coupon rate = 6.4% years = 4 Face value =$1,000 Yield to maturity = 7.2% Bond price = $973.02…