Question

A bond with a 2-year maturity has a coupon rate of 13% and a face value...

A bond with a 2-year maturity has a coupon rate of 13% and a face value of $1,000. The coupons are paid annually and the next coupon is due in one year. The bond’s yield to maturity is 13%. What is this bond’s Modified Duration?

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
A bond with a 3-year maturity has a coupon rate of 6% and a face value...
A bond with a 3-year maturity has a coupon rate of 6% and a face value of $1,000. The coupons are paid annually and the next coupon is due in one year. The bond’s yield to maturity is 9%. What is its Macaulay Duration?
bond has $1,000 face value, 25 years to maturity, 3.6% annual coupon rate. The bond’s current...
bond has $1,000 face value, 25 years to maturity, 3.6% annual coupon rate. The bond’s current price is $948.92. Assuming the bond pays coupons semiannually, what is the bond’s yield to maturity (YTM)?
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.
A bond has $1,000 face value, coupon rate of 3.5%, and yield to maturity (YTM) of...
A bond has $1,000 face value, coupon rate of 3.5%, and yield to maturity (YTM) of 3.7%. It will mature in 16 years and the interest rate will compound annually. What is this bond’s current yield?
A 25-year maturity bond with face value of $1,000 makes annual coupon payments and has a...
A 25-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8.1%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the bond’s yield to maturity if the bond is selling for $910? b. What is the bond’s yield to maturity if the bond is selling for $1,000? c. What is the bond’s yield to maturity if the bond is selling for...
A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a...
A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 8.8%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.) a. What is the bond’s yield to maturity if the bond is selling for $980? b. What is the bond’s yield to maturity if the bond is selling for $1,000? c. What is the bond’s yield to maturity if the bond is selling for...
2. Today, a bond has a coupon rate of 8.4 percent, par value of 1,000 dollars,...
2. Today, a bond has a coupon rate of 8.4 percent, par value of 1,000 dollars, YTM of 4.82 percent, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bond’s price was 1,041.94 dollars and the bond had 17 years until maturity. What is the current yield of the bond today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. 3....
Suppose a 5-year bond with a 5% coupon rate, semiannual coupons and a face value of...
Suppose a 5-year bond with a 5% coupon rate, semiannual coupons and a face value of $1000 has a yield to maturity of 8% APR. What is the bond’s yield to maturity expressed as an effective semi-annual rate? What is the bond’s yield to maturity expressed as an effective annual rate (EAR)? What is the price of the bond? If the bond’s yield to maturity changes to 5% APR, what will the bond’s price be?
A 10-year bond has a face value of $1,000 with a 5% per annum coupon rate....
A 10-year bond has a face value of $1,000 with a 5% per annum coupon rate. The bond pays coupons semi-annually. The current yield to maturity of the bond is 4% per annum. After 5 years, the yield to maturity of the bond is predicted to increase to 6% per annum, what would be the value of the bond in Year 5?
An Apple annual coupon bond has a coupon rate of 6.9%, face value of $1,000, and...
An Apple annual coupon bond has a coupon rate of 6.9%, face value of $1,000, and 4 years to maturity. If its yield to maturity is 6.9%, what is its Modified Duration? Answer in years, rounded to three decimal places.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT