Question

Compute the durations of a bond with coupon of 12%, term to maturity of 10 years...

  1. Compute the durations of a bond with coupon of 12%, term to maturity of 10 years and yield to maturity of 8%.

a. 6.50 years

b. 6.74 years

c. 6.86 years

d. 6.92 years

e. 10 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
Bond A offers a coupon rate of 12%, has a remaining life of 10 years and...
Bond A offers a coupon rate of 12%, has a remaining life of 10 years and a face value of $1,000. Coupon payments for Bond A are paid semi-annually. If the yield to maturity on Bond A is 14%, what is Bond A’s current price? a. $1,529.70 b. $1,114.70 c. $1,000.00 d. $894.06 e. $929.76
A semi-annual coupon bond with 2 years to maturity and 8% per annum coupon rate has...
A semi-annual coupon bond with 2 years to maturity and 8% per annum coupon rate has a face value of $1,000 with a yield to maturity of 12% per annum (compounded semi-annually). Using the bond’s modified duration, estimate the new bond price when the yield to maturity immediately changes from 12% per annum to 8% per annum. Select one: a. 66.27 dollars.   b. 996.97 dollars. c. 930.70 dollars. d. 864.43 dollars. e. None of the statements is true.
1.A 12-year bond has a 9 percent annual coupon, a yield to maturity of 11.4 percent,...
1.A 12-year bond has a 9 percent annual coupon, a yield to maturity of 11.4 percent, and a face value of $1,000. What is the price of the bond? 2.You just purchased a $1,000 par value, 9-year, 7 percent annual coupon bond that pays interest on a semiannual basis. The bond sells for $920. What is the bond’s nominal yield to maturity? a.         7.28% b.         8.28% c.         9.60% d.         8.67% e.         4.13% f.          None of the above 3.A bond with...
A bond has 8 years until maturity, carries a coupon rate of 8%, and sells for...
A bond has 8 years until maturity, carries a coupon rate of 8%, and sells for $1,100. What is the yield to maturity if interest is paid once a year? A. 6.3662% B. 9.146% C. 5.048% D. None of these A bond has 8 years until maturity, carries a coupon rate of 8%, and sells for $1,100. What is the current yield on the bond? A. 7.27% B. 9.14% C. 5.04% D. None of these
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10...
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10 2. (10 points) Compute the following yields: a) the yield to maturity for Bond 1, above, if the current bond price is $875. b) the yield to call for Bond 1 if its current price is $1050 and it is callable in 4 years at a value of par plus one year’s coupon interest.
compute the price of a 4.6% coupon bond with 10 years left to maturity and a...
compute the price of a 4.6% coupon bond with 10 years left to maturity and a market interest rate of 7% assume interest payments are semi annual
A bond has a face value $1000, maturity of 10 years, and a coupon rate of...
A bond has a face value $1000, maturity of 10 years, and a coupon rate of 8%, paid semi-annually. Assuming the yield-to-maturity is 10%, the current price of the bond is:
a bond was issued 5 years ago at par with a maturity of 10 years, a...
a bond was issued 5 years ago at par with a maturity of 10 years, a yield-to-maturity of 6.50% compounded semiannually and semi annual coupons. what is the price of this bond today immediately after the receipt of today's coupon if the YTM has fallen to 5.50% compounded semi annually?
A bond has a $1,000 par value, 10 years to maturity, and pays a coupon of...
A bond has a $1,000 par value, 10 years to maturity, and pays a coupon of 7.0% per year, semiannually. You expect the bond’s yield to maturity to decrease to 6.5% per year in two years. If you buy the bond today for $987.75 and sell it in two years, what is the annual return on your investment? Question 9 options: A) 9.42% B) 9.12% C) 8.96% D) 8.74% E) 9.04%
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which...
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which of the following statements is CORRECT? * a. The bond sells at a price below par. b. The bond has a current yield less than 10%. c. The bond sells at a discount. d. a & c. e. None of the above 2. J&J Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT