Question

What the Approximate Duration of 20 year bond, making semiannual coupon payments, with a coupon rate...

What the Approximate Duration of 20 year bond, making semiannual coupon payments, with a coupon rate of 5and a current price of 70.31 per 100 of par value, considering a 50 bps change in the discount rate?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bond P is a premium bond making semiannual payments. The bond pays a coupon rate of...
Bond P is a premium bond making semiannual payments. The bond pays a coupon rate of 8 percent, has a YTM of 6 percent, and has 12 years to maturity. Bond D is a discount bond making semiannual payments. This bond pays a coupon rate of 6 percent, has a YTM of 8 percent, and also has 12 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? If interest rates remain...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 9 percent, has a YTM of 7 percent, and has 19 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 7 percent, has a YTM of 9 percent, and also has 19 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? (Do not round intermediate...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 8 percent, has a YTM of 6 percent, and has 12 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 6 percent, has a YTM of 8 percent, and also has 12 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? (Do not round intermediate...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 12 percent, has a YTM of 10 percent, and has 12 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 10 percent, has a YTM of 12 percent, and also has 12 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? (Do not round intermediate...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 8 percent, has a YTM of 6 percent, and has 12 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 6 percent, has a YTM of 8 percent, and also has 12 years to maturity. The bonds have a $1,000 par value. What is the price of each bond today? (Do not round intermediate...
Bond x is a premium bond making semiannual payments. the bond has coupon rate of 8.3...
Bond x is a premium bond making semiannual payments. the bond has coupon rate of 8.3 percent, a ytm of 6.3 percent, and has 16 years to maturity. Bond y is a discount bond making semiannual payments. this bond has a coupon rate of 6.3 percent, a ytm of 8.3 percent, and also has 16 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of 1000. what are the prices of these bonds...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of...
Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 7.4 percent, has a YTM of 6.8 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a coupon rate of 6.8 percent, has a YTM of 7.4 percent, and has 13 years to maturity. What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of...
Show all work please. a) What is the duration of a four-year semiannual coupon bond with...
Show all work please. a) What is the duration of a four-year semiannual coupon bond with a 6 percent coupon rate selling at par? b) What is the duration of a three-year semiannual coupon bond with a 6 percent coupon rate selling at par? c) What is the duration of a two-year semiannual coupon bond with a 6 percent coupon rate selling at par? d) Using these results, what conclusions can you draw about the relationship between duration and maturity?
Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of...
Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 12 percent, a YTM of 10 percent, and 12 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond has a coupon rate of 10 percent, a YTM of 12 percent, and also has 12 years to maturity. Both bonds have a par value of $1,000. What is the price of each bond today? (Do not round intermediate calculations....
An investor, with an investment horizon of 10 years is considering purchasing a bond with a...
An investor, with an investment horizon of 10 years is considering purchasing a bond with a Macaulay Duration of 12. If the investor goes through with the purchase she will be subject to ________ risk and be worse off if interest rates ________. reinvestment; go up reinvestment; go down interest rate; go down none of the above. What is the Approximate Modified Duration of a 20 year bond, making semiannual coupon payments, with a coupon rate of 5% selling at...