Question
16. For the following bond, calculate the bonds duration and convexity: Coupon Rate 7.50% Semiannual coupons 3 years * 2 pmts/yr=6 total pmts Face Value
| 16. For the following bond, calculate the bonds duration and convexity: | |||
| Coupon Rate | 7.50% | ||
| Semiannual coupons | 3 years * 2 pmts/yr=6 | total pmts | |
| Face Value | $ 1,000.00 | ||
| Yield to Maturity | 9.00% | ||
| Years to Maturity | 3 | ||
| Purchase Date | 1/1/17 | ||
| Maturity Date | 1/1/20 | ||
| Your answer is based on semiannual coupons, so both calculations are semiannual. What | |||
| are the annualized duration and convexity of the bond? Use the Macaulay duration formula and convexity formula. Use excel spreadsheet formulas as well. | |||
| Duration | semi annual | ||
| annualized | |||
| Convexity | semi annual | ||
| annualized | |||
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Finance For Small And Entrepreneurial Business
Authors: Richard Roberts
1st Edition
0415721008, 978-0415721004
