Question
1. Find the yield to maturity on a semiannual coupon bond you are thinking of buying today. The bond price is $1128, the coupon rate
1. Find the yield to maturity on a semiannual coupon bond you are thinking of buying today. The bond price is $1128, the coupon rate is 6.5%, the face value is $1000, and was issued on Aug 15, 2013, maturing in 13 years.
2 a.
What is the duration of the following bonds (round to two decimal places)
Terms: | Bond A | Bond B | Bond C | Bond D |
Settlement Date: | 4/15/2020 | 4/15/2020 | 4/15/2020 | 4/15/2020 |
Issue Date: | 12/15/2015 | 6/1/2018 | 9/15/2012 | 3/1/2019 |
Maturity Date: | 12/15/2035 | 6/1/2023 | 9/15/2042 | 3/1/2029 |
Par Value (% of Par): | 100.00 | 100.00 | 100.00 | 100.00 |
Price Now (% of Par): | ||||
Coupon Rate: | 5.50% | 2.85% | (zero-coupon) | 2.75% |
Current Yield: | 3.62% | 1.9% | 2.5% | 2.11% |
Coupon Pmt Frequency: | 2 (Semi-annual) | 2 (Semi-annual) | 2 (Semi-annual) | 2 (Semi-annual) |
b. What is the modified duration of the bonds in the previous section (round to two decimal places)
1. _________
2. _________
3. _________
4. _________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started