Question

Find the duration of a 4% coupon bond making annual coupon payments if it has 3 years until maturity and has a yield to maturity of 4%. What is the duration if the yield to maturity is 6%? Note: The face value of the bond is $1,000. (Do not round intermediate calculations. Round your answers to 3 decimal places.)

Duration 4% YTM:

6% YTM:

Answer #1

a. Find the duration of a 6% coupon bond making annual coupon
payments if it has three years until maturity and has a yield to
maturity of 6%. Note: The face value of the bond is $1,000. (Do not
round intermediate calculations. Round your answers to 3 decimal
places.) b. What is the duration if the yield to maturity is 10%?
Note: The face value of the bond is $1,000. (Do not round
intermediate calculations. Round your answers to 3...

Find the duration of a 6% coupon bond making annual coupon
payments if it has three years until maturity and a yield to
maturity of 7.7%. What is the duration if the yield to maturity is
11.7%? (Do not round intermediate calculations. Round your answers
to 4 decimal places.)
YTM Duration 7.7% YTM 11.7% YTM

Find the duration of a 8% coupon bond making annual
coupon payments if it has three years until maturity and a yield to
maturity of 7.8%. What is the duration if the yield to maturity is
11.8%? (Do not round intermediate calculations. Round your
answers to 4 decimal places.)
YTM
Duration
7.8% YTM

Find the duration of a 8% coupon bond making annual
coupon payments if it has three years until maturity and a yield to
maturity of 7.8%. What is the duration if the yield to maturity is
11.8%? (Do not round intermediate calculations. Round your
answers to 4 decimal places.)
YTM
Duration
7.8% YTM
11.8% YTM

Find the duration of a 4.0% coupon bond making
semiannually coupon payments if it has three years until
maturity and has a yield to maturity of 6.0%. What is the duration
if the yield to maturity is 8.0%? Note: The face value of the bond
is $100. (Do not round intermediate calculations. Round
your answers to 4 decimal places.)

Find the duration of a 6% coupon bond making annual coupon
payments if it has three years until maturity and a yield to
maturity of 10%. (Round your answer to three decimal places)

A 30-year maturity bond making annual coupon payments with a
coupon rate of 7% has duration of 15.16 years and convexity of
315.56. The bond currently sells at a yield to maturity of 5%.
a.
Find the price of the bond if its yield to maturity falls to 4%
or rises to 6%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of
4%
$
Yield to maturity of
6%...

A 30-year maturity bond making annual coupon payments with a
coupon rate of 16.0% has duration of 10.55 years and convexity of
161.7. The bond currently sells at a yield to maturity of 9%. a.
Find the price of the bond if its yield to maturity falls to 8%.
(Do not round intermediate calculations. Round your answer to 2
decimal places.) Price of the bond $ b. What price would be
predicted by the duration rule? (Do not round intermediate...

A 4 year maturity bond making annual coupon payments with a
coupon of 8% has a duration of 3.607 years and a convexity of
16.08. The bond currently sells at a yield of 4%. What is the
actual price of the bond if the YTM immediately increases to 6%?
Round you answer to the nearest penny. Answer:

a. What is the duration of a two-year bond that
pays an annual coupon of 10.3 percent and has a current yield to
maturity of 12.3 percent? Use $1,000 as the face value. (Do
not round intermediate calculations. Round your answer to 4 decimal
places. (e.g., 32.1616))
b. What is the duration of a two-year zero-coupon
bond that is yielding 11.5 percent? Use $1,000 as the face
value.
a.
Duration
years
b.
Duration
years

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