Question

For a UK Government issued bond with six years to maturity, £1000 par value, 5% coupon...

For a UK Government issued bond with six years to maturity, £1000 par value, 5% coupon per year and an 8% yield to maturity, its Macaulay Duration is: a) 6 years b) 5.5 years c) 5.3 years d) 4.8 years e) 4.5 years

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Details of a semiannual bond: Par value = 1000 Maturity = 4 years Yield to Maturity...
Details of a semiannual bond: Par value = 1000 Maturity = 4 years Yield to Maturity = 11% per annum Coupon Rate = 8% per year paid semiannually Find the duration, modified duration, and convexity of the bond.
Par Value : $1,000 Coupon Rate : 8% Maturity period : 5 Years Market Price :...
Par Value : $1,000 Coupon Rate : 8% Maturity period : 5 Years Market Price : 1,110 Instructions: Please using Trial and Error to find the expected rate of return with PVIFA and PVIF Table and the Duration with the following information: Duration of a zero-coupon bond equals its maturity. It is only for zero-coupon bonds that duration and maturity are equal. Indeed, for any bond that pays some cash flows prior to maturity, its duration will always be less...
Consider an annual coupon bond with a $1000 par value and 5 years to maturity. The...
Consider an annual coupon bond with a $1000 par value and 5 years to maturity. The yield to maturity is 8% and the coupon rate is 10%. If the yield to maturity is held constant, which of the following can be inferred about this bond? this bond is selling at a premium and the price will increase with time this bond is selling at a discount and the price will increase with time this bond is selling at a discount...
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10...
Yield to maturity Moe’s Inc. has bonds outstanding with a par value of $1000 and 10 years to maturity. These bonds pay a coupon of $45 every six months. Current market conditions are such that the bond sells for $938. Calculate the yield to maturity on the issue. Duration A newly issued 5-year Altec Corp. bond has a price of $1,095.99, a par value of $1,000, and pays annual interest at a 12% coupon rate. Find the duration of the...
Consider an annual coupon bond with a $1000 par value and 5 years to maturity. The...
Consider an annual coupon bond with a $1000 par value and 5 years to maturity. The yield to maturity is 13% and the coupon rate is 10%. If the yield to maturity is held constant, which of the following can be inferred about this bond? a this bond is selling at a premium and the price will increase with time b this bond is selling at a premium and the price will decrease with time c this bond is selling...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity...
What is the price of a $1000 face value zero-coupon bond with 4 years to maturity if the required return on these bonds is 3%? Consider a bond with par value of $1000, 25 years left to maturity, and a coupon rate of 6.4% paid annually. If the yield to maturity on these bonds is 7.5%, what is the current bond price? One year ago, your firm issued 14-year bonds with a coupon rate of 6.9%. The bonds make semiannual...
Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual...
Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual coupon payments. The bond can be called at par in three years or anytime thereafter on a coupon payment date. If the bond is currently trading for $950.00, then its yield to maturity is closest to: Select one: A. 6.5% B. 6.18% C. 6.0% D. 6.8% Redd Industries has just issued a callable, $1000 par value, five-year, 5% coupon bond with semiannual coupon payments....
A 15 year bond was issued six years ago. It has a Face Value of $1000...
A 15 year bond was issued six years ago. It has a Face Value of $1000 and makes annual coupon payments of $42. If the current yield to maturity is 4.0% pa, will this bond sell at a premium, discount or at par today? a. premium b. not enough information provided to determine c. at par d. discount
A coupon bond pays annual interest, has a par value of $1,000, matures in 12 years,...
A coupon bond pays annual interest, has a par value of $1,000, matures in 12 years, has a coupon rate of 8%, and has a yield to maturity of 7%. 1) Calculate the price of the bond and the Current Yield. 2)   The Macaulay Duration for this bond is 8.29 years, then what is the Modified Duration? 3) Suppose you sell the bond at $1000 two years later. The reinvestment return during these two years is 6%. What is the...
1)What is the price of a bond if the par value is $1000, the coupon rate...
1)What is the price of a bond if the par value is $1000, the coupon rate is 5%(paid semi-annually), has 20 years to maturity and the market rate (yield to maturity per annum) is 8%? A. $683.11 B. $703.11 C. $813.11 D. $923.11 E. 1063.11 2) What is the coupon rate of a bond with a par value of $1000, it is currently selling for $800, has 15 years to maturity and the market rate (yield to maturity) is 10%...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT