Question

A 6% coupon bond is making annual coupon payments and has a duration of 8 years. What will be the percentage change in the bond's price if its yield to maturity changes from 6% to 6.1%?

Answer #1

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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

(excel) Consider a 8% coupon bond
making annual coupon payments with 4 years until maturity
and a yield to maturity of 10%.
What is the modified duration of this bond?
If the market yield increases by 75 basis points, what is the
actual percentage change in the bond’s
price? [Actual, not approximation]
Given that this bond’s convexity is 14.13, what price would you
predict using the duration-with-convexity
approximation for this bond at this new yield?
What is the percentage error?

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 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 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. 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 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:

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 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 10.2% has duration of 11.03 years and convexity of
176.83. 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%.
b. What price would be predicted by the duration rule?
c. What price would be predicted by the duration-with-convexity
rule?
d-1. What is the percent error for each rule?
d-2. What...

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