Question
Consider a 7.0% annual coupon bond with maturity of 12 years and a face value of $1,000. The data has been collected in the Microsoft
Consider a 7.0% annual coupon bond with maturity of 12 years and a face value of $1,000.
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Do not round intermediate calculations. Round your answer to two decimal places.
What would the YTM yield on the bond be if it were selling for $958?
| Annual coupon payment: | |
| YTM: |
Consider a bond with an annual 8% coupon rate, seven years until maturity, and a YTM of 9.8%.
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Do not round intermediate calculations. Round your answer to two decimal places.
What would the Macaulay duration of the bond be?
| Annual coupon rate | 8% |
| Yield | 9.8% |
| n | 7 |
| Payments per year | 1 |
| Basis | 0 |
| Settlement date | |
| Maturity date | |
| Duration |
Consider a bond with an annual 8% coupon rate, 13 years until maturity, and a YTM of 10%.
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Do not round intermediate calculations. Round your answer to two decimal places. What would the modified duration of the bond be?
| Annual coupon rate | 8% |
| Yield | 10% |
| n | 13 |
| Payments per year | 1 |
| Basis | 0 |
| Settlement date | |
| Maturity date | |
| Modified duration |
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Victorian Literature And Finance
Authors: Francis O'Gorman
1st Edition
0199281920, 978-0199281923
