Please show work for ALL OF THEM. 10-19. They already have the answers. Please show step by step for ALL OF THE QUESTIONS. Thank you!
10. Suppose the bond in number 9 just paid its 10th coupon (i.c., it has 350 payments left). What is the price if market rates have risen to 8.86% ? [62561.26+7617.87= 70179.13] 11. You notice that a bond rises in price from $1000 to $1064.18 when rates go from 10% to 9%. What is the duration of this bond? [7.06] 12. A bond has a duration of 4.2 years. If interest rates fall by 50 basis points from an initial rate of 8.2 percent, what is the expected return on the bond? [+1.94%] 13. Calculate the duration of a bond paying a 7% annual coupon with a market rate of interest of 9%,$1000 face value, and a maturity of three years. [2.80 years] 14. Calculate the duration of a bond paying a 8% annual coupon with a market rate of interest of 9%,$1000 face value, and a maturity of three years. [2.78 years] 15. Calculate the duration of a bond paying a 9% annual coupon with a market rate of interest of 9%,$1000 face value, and a maturity of four years. [3.53 years] 16. Calculate the duration of a bond paying a 7% annual coupon with a market rate of interest of 10%,$1000 face value, and a maturity of three years. [2.80 years] 17. Calculate the duration of a bond paying a 7% annual coupon with a market rate of interest of 12%,$1000 face value, and a maturity of four years. [3.59 years] 18. Calculate the duration of a bond paying a 8% semi-annual coupon with a market rate of interest of 10%,$1000 face value, and a maturity of two years. [1.885 or 1.89 years] 19. Calculate the duration of a bond paying a 8.40% semi-annual coupon with a market rate of interest of 6.6%,$1000 face value, and a maturity of two-and-one half years. [2.31 years] 10. Suppose the bond in number 9 just paid its 10th coupon (i.c., it has 350 payments left). What is the price if market rates have risen to 8.86% ? [62561.26+7617.87= 70179.13] 11. You notice that a bond rises in price from $1000 to $1064.18 when rates go from 10% to 9%. What is the duration of this bond? [7.06] 12. A bond has a duration of 4.2 years. If interest rates fall by 50 basis points from an initial rate of 8.2 percent, what is the expected return on the bond? [+1.94%] 13. Calculate the duration of a bond paying a 7% annual coupon with a market rate of interest of 9%,$1000 face value, and a maturity of three years. [2.80 years] 14. Calculate the duration of a bond paying a 8% annual coupon with a market rate of interest of 9%,$1000 face value, and a maturity of three years. [2.78 years] 15. Calculate the duration of a bond paying a 9% annual coupon with a market rate of interest of 9%,$1000 face value, and a maturity of four years. [3.53 years] 16. Calculate the duration of a bond paying a 7% annual coupon with a market rate of interest of 10%,$1000 face value, and a maturity of three years. [2.80 years] 17. Calculate the duration of a bond paying a 7% annual coupon with a market rate of interest of 12%,$1000 face value, and a maturity of four years. [3.59 years] 18. Calculate the duration of a bond paying a 8% semi-annual coupon with a market rate of interest of 10%,$1000 face value, and a maturity of two years. [1.885 or 1.89 years] 19. Calculate the duration of a bond paying a 8.40% semi-annual coupon with a market rate of interest of 6.6%,$1000 face value, and a maturity of two-and-one half years. [2.31 years]
