Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A bond pays annual interest. Its coupon rate is 11.2%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity
A bond pays annual interest. Its coupon rate is 11.2%. Its value at maturity is $1,000. It matures in 4 years. Its yield to maturity is currently 8.2%. The duration of this bond is _______ years.
a) 3.20
b)4.00
c)2.95
d) 3.46
A bond currently has a price of $1,050. The yield on the bond is 7%. If the yield increases 21 basis points, the price of the bond will go down to $1,021. The duration of this bond is ____ years.
a)14.09
b)13.14
c)12.26
d)14.50
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