Required: An eight-year bond paying coupons annually has a yield of 9% and a duration of 7.201 years. If the bond's yield changes by 25 basis points, what is the percentage change in the bond's price? (Input the value as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) The bond's price %.
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- suppose a 30 year, pay coupon of 4% is priced to yield 5%. par = 1000. the bond pays its coupon annually. calculate the instrinsic value of the bond. decide whether the bond is at premium or discount? please show the calculation using excelConsider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.9%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. a. What is the coupon payment for this bond? The coupon payment for this bond is $ (Round to the nearest cent.)Assume that A six-year bond with a yield of 10% (continuously compounded) pays an 8% coupon at the end of each year. (a) What is the bond’s price? (b) What is the bond’s duration? What is the bond’s modified duration? (c) Use the duration to calculate the effect on the bond’s price of a 0.15% decrease in its yield.
- What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to maturity, and a current price of $959? What is the modified duration? Duration is __. years. Modified duration is __ years.Consider two zero coupon bonds. Both have face values of $100. Bond A pays its face value in 8 years, and Bond B pays its face in 2 years. If interest rates change from 9% to 7%, what is the percentage change in the long maturity bond's price minus the percentage change in the short maturity bond's price? Express your answer in percentage form rounded to one decimal place.Consider a bond that has a price of $1046.76, a coupon rate of 8.8%, a yield to maturity of 8.1%, a face value of $1000, and 10 years to maturity. What is the current yield? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below. Enter your answer to 2 DECIMAL PLACES. Number %
- What is the price of a bond with a coupon rate of 7%, payable semi-annually, a face value of $1000, 7 years to maturity, and a yield to maturity of 6.8%? Enter your response below. Enter your answer to 2 DECIMAL PLACES. NumberConsider a 26-year bond with 6 percent annual coupon payments. The market rate (YTM) is 8.6 percent for this bond. The current yield of the bond is__________ percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69. Your Answer: Answer ChundAssume coupons are paid annually. Here are the prices of three bonds with 10 year maturities. Assume face value is $100. Bond Coupon a. What is the yield to maturity of each bond? b. What is the duration of each bond? Complete this question by entering your answers in the tabs below. Required A Required B What is the duration of each bond? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
- Suppose that the prices of zero-coupon bonds with various maturities are given in the following table. The face value of each bond is $1,000. Maturity (Years) 1 2 3 4 5 Price $983.78 865.89 797.92 732.00 660.24 Required: a. Calculate the forward rate of interest for each year. b. How could you construct a 1-year forward loan beginning in year 3? c. How could you construct a 1-year forward loan beginning in year 4?A bond with a face value of $1,000 has 10 years until maturity, has a coupon rate of 5.2%, and sells for $1,105. a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) c. What is the yield to maturity if interest is paid semiannually? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)Required: a. Find the duration of a 6.4% coupon bond making annual coupon payments if it has three years until maturity and has a yield to maturity of 6.4%. Note: The face value of the bond is $1,000. Do not round intermediate calculations. Round your answer to 2 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 answer to 2 decimal places. a. 6.4% YTM b. 10% YTM years years