Question

The $1000 face value 9% coupon bond pays interest semi-annually. The bond will mature in 3-years....

The $1000 face value 9% coupon bond pays interest semi-annually. The bond will mature in 3-years. Find the Convexity if it sells for $980.

(A) $17.84

(B) $21.84

(C) 19.94

(D) 17.94

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2


Convexity measure (years) = 32.98/3^2 3.66
answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a coupon bond that pays interest annually has par vaiue of $1000 mature in two years...
a coupon bond that pays interest annually has par vaiue of $1000 mature in two years and has required rate of return of 10%. the intrinsic vakue of the bond today will be......... if the the coupon rate is 6%
Bond A with a $1000$1000 par value pays coupons semi-annually at 4.44.4% and matures in 55...
Bond A with a $1000$1000 par value pays coupons semi-annually at 4.44.4% and matures in 55 years and 44 months. Bond B is a zero coupon bond with the same face value, time to maturity, and similar risk as Bond A and trades at $$788788. What is the dirty (or actual) price of Bond A, the coupon paying bond? $$ (Give answer to 2 decimal places)
4. A bond has a face value of $1000, a coupon rate of 6%, paid semi-annually,...
4. A bond has a face value of $1000, a coupon rate of 6%, paid semi-annually, has 23 years to maturity, and the market rate of interest is 7%. What is the value of the bond today?
A $1000 par value bond has a coupon rate of 7.7%, pays interest semi-annually, matures in...
A $1000 par value bond has a coupon rate of 7.7%, pays interest semi-annually, matures in 22 years, and is priced at a 82.97 discount from par value. What is the annual yield to maturity of this bond? (Answer to the nearest one hundedth of a percent, i.e., 1.23 but do not include the % sign).
A bond with a $1,000 face value and a 9 percent annual coupon pays interest annually....
A bond with a $1,000 face value and a 9 percent annual coupon pays interest annually. The bond matures in 12 years. A. Determine the value of the bond to a friend of yours with a required rate of return of 11%? B. A zero-coupon bond with similar risk is selling for $300. The bond has a face value of $1,000 and matures in 12 years. Your friend asks you which bond she should invest in, the zero coupon bond...
assume a $1000 face value bond has a coupono rate of 8.5% , pays interest semi-annually,...
assume a $1000 face value bond has a coupono rate of 8.5% , pays interest semi-annually, and has an eight year life. if investors are willing to accept a 10% rate of return on bonds of eszsimilar quality, what is the present value
A 5% coupon rate bond issues by Google has a face value of $1000, pays interest...
A 5% coupon rate bond issues by Google has a face value of $1000, pays interest semiannually, and will mature in 20 years. If the current market rate is 2% interest compounded semiannually, what is the bond’s price?
A bond pays a semi-annual coupon at an APR of 10.00%. The bond will mature in...
A bond pays a semi-annual coupon at an APR of 10.00%. The bond will mature in 7.00 years and has a face value of $1,000.00. The bond has a yield-to-maturity of 12.50% APR. What is the current yield for the bond? What is the current yield for the bond? A bond has ten years until maturity. The face value on the bond is $1,000.00, while the coupon rate attached to the bond is 9.75%. The bond pays coupons on an...
assume a $1000 face value bond had a coupon rate of 8.5% pays interest seni annually...
assume a $1000 face value bond had a coupon rate of 8.5% pays interest seni annually and had an eight year life.if investors are willing to accept a 10% rate of return on the bonds of similar quality, what is the present value of this bond
A bond with a face value of $1,000 pays $50 in interest annually and matures in...
A bond with a face value of $1,000 pays $50 in interest annually and matures in 1 year. The bond was purchased for $980. What is the yield at maturity and coupon rate? A. The yield to maturity is 5.00% and the coupon rate is 5.10% B. Can't tell from the information given C. The yield to maturity is 7.14% and the coupon rate is 5.00% D. The yield to maturity is 5.10% and the coupon rate is 7.00% E....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT