What is the Macaulay duration of a bond with a coupon of 7.8 percent, eight years to maturity, and a current price of $1,034.50? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration Years Years

Q: A bond with a coupon rate of 11 percent sells at a yield to maturity of 13 percent. If the bond…

A: Here,Time to Maturity is 15 YearsCoupon Rate is 11%Yield to Maturity is 13%

Q: Compute the current yield of a(n) 10.5%, 20-year bond that is currently priced in the market at…

A: 1. Current yield on bond = 2. yield to maturity  = where,RV =redemption value NP = current pricen =…

Q: The duration of a par-value bond with a coupon rate of 10% (paid annually) and a rema years. Round…

A: Duration of the bond shows the weighted period required to recover all cash flow from the bond.It is…

Q: What is the modified duration of a semiannual-pay 10.3 percent coupon bond with 11 years to maturity…

A: The modified duration of a bond is used to find out the change in the price of the bond for every…

Q: A bond with a coupon rate of 9 percent sells at a yield to maturity of 10 percent. If the bond…

A: Macaulay duration can be explained as the weighted average of the time the bond needs to be held to…

Q: Compute the price of a $1,000 par value, 8 percent (semi- annual payment) coupon bond with 28 years…

A: In  this question we are required to calculate current price of the bond from the given below data :…

Q: 1 2 3 4 5 3.00% 3.50% 3.11% 4.00% 4.78%

A: Interest rate:"Interest rate" refers to the percentage that either a lender receives on an…

Q: The 3-year, 5-year, and 7-year zero rates are 1%, 2%, and 3%. The rates are given per annum with…

A:

Q: A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.50…

A: Macaulay Duration: It represents the weighted average term to maturity of the bond cash flows. It…

Q: A bond with a coupon rate of 11 percent sells at a yield to maturity of 13 percent. If the bond…

A: Macaulay duration show changes in prices of bonds with changes in interest rate in the market.…

Q: You will be paying $9,500 a year in tuition expenses at the end of the next two years. Bonds…

A: ABCDECalculation1Time012total2cash flow$9,500$9,500$19,0003present…

Q: Calculate the price of a zero-coupon bond that matures in 12 years if the market interest rate is…

A: Here, Interest rate is ‘r’ Maturity period is ‘t’

Q: Compute the price of a $1,000 par value, 20 percent (semi-annual payment) coupon bond with 15 years…

A: The objective of this question is to calculate the price of a bond given its par value, coupon rate,…

Q: 2. What is the yield-to-maturity of a bond that sells for 93 (ie 93% of face value) with 5 years to…

A: The objective of this question is to calculate the yield-to-maturity (YTM) of a bond. The YTM is the…

Q: A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $ 1, 110.…

A:

Q: Compute the price of a $1,000 par value, 20 percent (semi-annual payment) coupon bond with 15 years…

A: The objective of this question is to calculate the price of a bond given its par value, coupon rate,…

Q: A 5.20 percent coupon bond with 15 years left to maturity is offered for sale at $935.22. What yield…

A: The yield to maturity of the bond can be calculated using Excel's =RATE function. The detailed…

Q: Baghiben

A: Step 1:Bond duration is a metric that reveals how much a bond's price may move in response to…

Q: A bond with a coupon rate of 8 percent sells at a yield to maturity of 10 percent. If the bond…

A: Coupon Rate =8%Coupon Amount =1000*8% =80Years =15Yield to maturity =10% ie discount…

Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price…

A: Solution:- Yield to maturity (YTM) of a bond means the rate of return the bond is yielding. We know,…

Q: A 6.15 percent coupon bond with 15 years left to maturity is priced to offer a yield to maturity of…

A: Coupon rate = 6.15%Maturity = 15 yearsYield today = 7.3%Yield 1 year later = 7%To find: Change in…

Q: Calculate the bond equivalent yield and effective annual return on a negotiable CD that is 125 days…

A: Bond equivalent return:The bond equivalent yield (BEY) is a financial metric that expresses the…

Q: Calculate the price of a zero-coupon bond that matures in 15 years if the market interest rate is…

A: Introduction:Zero-coupon bond- Such bonds are issued at a discount rate from their face value and it…

Q: A 6.75 percent coupon bond with 20 years left to maturity is offered for sale at $1,145.25. What…

A: Yield to maturity (YTM) is the rate which an investor earns when the bond is held till its maturity.

Q: has a coupon rate of 8%, face value of $100, and 3 years to maturity. If its yield to maturity is…

A: Given information :

Q: A three year bond has par value of $1100, coupon rate of 5% which is paid semiannually, and a price…

A: Compound = Semiannually = 2Time = nper = 3 * 2 = 6Face value = fv = $ 1100Coupon rate = 5 / 2 =…

Q: A bond is issued with a coupon of 4% paid annually, a maturity of 39 years, and a yield to maturity…

A: The rate of return refers to the premium amount as a percentage of the invested amount. The premium…

Q: What yield to maturity is the bond offering?

A: Yield To Maturity is the rate of return earned by the bondholder when all the payments of interest…

Q: Calculate the Macaulay duration of a 12%, $1,000 par bond that matures in three years if the bond's…

A: Duration of a bond shows how much the bond price is sensitive to the change in the interest rate and…

Q: A 6.25 percent coupon bond with 19 years left to maturity is offered for sale at $1,095.25. What…

A: Yield to maturity (YTM) is the rate which an investor earns when the bond is held till its maturity.

Q: What is the market price of a $1,000, 8 percent bond if comparable market interest rates rise to 10…

A: Given, C = coupon payment = $80.00 (Par Value * Coupon Rate)n = number of years = 14r = market rate…

Q: A 5.60 percent coupon bond with 15 years left to maturity can be called in six years. The call…

A: I Periodic coupon amount 28 F Call price 1056 P Current market price/proceeds 1116.5 n…

Q: A bond is issued with a coupon of 5% paid annually, a maturity of 37 years, and a yield to maturity…

A: Bonds refer to instruments that allow the issuing company access to debt capital from…

Q: Calculate the forward rate for (i) the second year; (ii) the third year; (iii) the fourth year.

A: The forward rate is an indicator used to forecast future yields or interest rates on financial…

Q: Compute the price of a $1,000 par value, 20 percent (semi-annual payment) coupon bond with 15 years…

A: The objective of this question is to calculate the price of a bond given its par value, coupon rate,…

Q: Calculate the yield to maturity on a $1,000 face value bond purchased for $1,064.50 if it carries a…

A: Current price = $1,064.50 Semiannual coupon amount = $39.50 (i.e. $1000 * 0.079 / 2) Semiannual…

Q: What is the effective yield to maturity of a $1,000 par value strip bond that sells for $255 and…

A: Effective yield to maturity in the case of strip bond is computed as follows:-Effective yield to…

Q: ond Z is an 8% annual coupon bond maturing in 5 years with a face value of maturities is 10%. What…

A: The following information has been provided in the question: Coupon rate =5% Face value =$1000…

Q: Compute the price of a $1,000 par value, 20 percent (semi-annual payment) coupon bond with 15 years…

A: The objective of this question is to calculate the price of a bond given its par value, coupon rate,…

Q: A bond with a coupon rate of 10 percent sells at a yield to maturity of 11 percent. If the bond…

A: The Macaulay duration of the bond refers to the time it takes for the payments of the bond to cover…

Q: You will be paying $12.800 a year in tuition expenses at the end of the next two years Bonds…

A: Presnet value refers to the method used by the investors for estimating the profitability of the…

Q: Raghubhai

A: Due to limitations in calculating bond duration with built-in Excel functions for specific…

Q: e 3-year interest rate is 6.60%, and the 4-year interest rate is 7.90%. The liquidity premia for 3-…

A: Given, 3 year interest rate=6.60%  4 year interest rate=7.9%  Liquidity premium for 3 years= 0.60%…

Q: Calculate out the present value of the following bond contract: Coupon payments of $ 65,000 at the…

A: The present value indicates the current value of $1 which is going to be received or paid after…

Q: Using an annual effective interest rate of 10%, the Macaulay Duration (in years) of a 10-year 100 p…

A: Yield of bond=10%Period of bond=10 yearsduration of bond=6.96

Q: a. Calculate this bond's modified duration. Do not round intermediate calculations. Round your…

A: Modified duration is a measure used in finance to estimate the percentage change in the price of a…

Q: Calculate the Macaulay duration of an 8%, $1,000 par bond that matures in three years if the bond's…

A: Duration of a bond shows how much the bond price is sensitive to the change in the interest rate and…

Q: Consider the following maturity / yield to maturity for all treasuries. Interest compounds…

A: a) A zero-coupon security is a type of bond that does not pay interest but instead is issued at a…

Q: A bond with a coupon rate of 9 percent sells at a yield to maturity of 11 percent. If the bond…

A: Here,Time to Maturity is 12 YearsCoupon Rate is 9%Yield to Maturity is 11%