Question

Show all work please.

a) What is the duration of a four-year semiannual coupon bond with a 6 percent coupon rate selling at par?

b) What is the duration of a three-year semiannual coupon bond with a 6 percent coupon rate selling at par?

c) What is the duration of a two-year semiannual coupon bond with a 6 percent coupon rate selling at par?

d) Using these results, what conclusions can you draw about the relationship between duration and maturity?

Answer #1

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Consider the following.
a. What is the duration of a four-year Treasury bond with a 11
percent semiannual coupon selling at par?
b. What is the duration of a three-year Treasury bond with a 11
percent semiannual coupon selling at par?
c. What is the duration of a two-year Treasury bond with a 11
percent semiannual coupon selling at par?
Please show work using Duration Equation, not excel.

Consider the following.
a. What is the duration of a four-year Treasury bond with a 8
percent semiannual coupon selling at par?
b. What is the duration of a three-year Treasury bond with a 8
percent semiannual coupon selling at par?
c. What is the duration of a two-year Treasury bond with a 8
percent semiannual coupon selling at par? (For all requirements, do
not round intermediate calculations. Round your answers to 2
decimal places. (e.g., 32.16))
a
Duration of...

Calculate the duration of a 2-year bond with 8% semiannual
coupon selling at par
if interest rate decreases by 1 percentage point,by how much
will the price of the bond change, based on the Duration model?

Suppose that a zero coupon bond selling at $1,000 par has a
duration of four years. If interest rates increase from 6 percent
to 7 percent annually, the value of the bond will fall by what
amount using Equation 6.14? Use semiannual compounding. Then, use
the PV formula to determine the actual price of the bond at 7
percent. What is the difference? Why is there a difference?

What the Approximate Duration of 20 year bond, making semiannual
coupon payments, with a coupon rate of 5and a current price of
70.31 per 100 of par value, considering a 50 bps change in the
discount rate?

a. What is the duration of a two-year bond that pays an annual
coupon of 11.2 percent and has a current yield to maturity of 13.2
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.
*please show using financial calculator if possible*

Assume that a $1,000,000 par value, semiannual coupon U.S.
Treasury bond with three years to maturity (YTM) has a coupon rate
of 6%. The yield to maturity of the bond is 11.0%. Using this
information and ignoring the other costs involved, calculate the
value of the Treasury bond.
Please show your calculations.

Please show all work
Present Value and Yield to Maturity. (a) A 15
year coupon bond with face value $250,000 and a 5% coupon rate has
a yield to maturity i = 0.06. What is the value of the annual
coupon payment? What is the price of this coupon bond?
Answer: C = $12,500 and PCB = $225,719.39
(b) A 10 year coupon bond with a 4% coupon rate and yield to
maturity i = 0.05 sells for a price...

Please show how to solve using EXCEL ONLY.
10. Calculate the duration of a $1,000, 12‐year
zero coupon
bond using annual compounding and a current market rate
of 9 percent.
12. Calculate the duration for a $1,000, 4‐year
bond with a
4.5 percent annual coupon, currently selling at par. Use the
bond’s duration to estimate the percentage change in the
bond’s price for a decrease in the market interest rate to
3.5 percent. How different is your answer from the...

Please show work so I can follow. Thank you.
Calculate the single and annual coupon payments assuming the
following:
Semiannual bond, Coupon rate of 8 percent, Par value of
$1,000:
Annual bond, Coupon rate of 4.5 percent, Par value of
$100:
Monthly bond, Coupon rate 12 percent, Par value $850:

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