Question
A 16-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.75%. Coupon is to be paid semi-annually. The reported annual
A 16-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.75%. Coupon is to be paid semi-annually. The reported annual yield to maturity is 5.4%. Solve the following questions: a) What is the present value of the bond? b) What is the duration of the bond? c) If the yield to maturity changes to 1%, what will be the present value? d) If the yield to maturity changes to 8%, what will be the present value? e) If the yield to maturity changes to 15%, what will be the present value? ANSWER IN EXCEL FORMAT!!
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
