Question
A 3-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.25%. Coupon is to be paid semi-annually. The reported annual
A 3-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.25%. Coupon is to be paid semi-annually. The reported annual yield to maturity is 6.8%. 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 2%, what will be the present value?
d.If the yield to maturity changes to 7%, what will be the present value?
e.If the yield to maturity changes to 16%, what will be the present value?
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Real Estate Finance
Authors: John P. Wiedemer, Keith J. Baker
9th edition
324181426, 324181425, 978-0324181425
