What is the price of a 5-year bond with a nominal value of $100, a yield to maturity of 7% (with annual compounding frequency), a 10% coupon rate and an annual coupon frequency.
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- What is the market price of a redeemable (at par) bond, with a maturity date in 4 years’ time, and a coupon rate of 10%, if current cost of debt, Kd (return required or yield) is 8%?What is the Yield-to-Maturity of a bond with a par value of $1000, a current price of $819.36, 11 years to maturity, and a Coupon Rate of 5.5% (with semi-annual coupon payments)?Consider a bond with a 4% annual coupon and a face value of $1,000. Complete the following table. What relationships do you observe between years to maturity, yield to maturity, and the current price?
- What is the duration of a five-year bond with a coupon rate of 7%, a yield to maturity of 8%, a semi-annual coupon payment, and a face value of $1,000?What is the coupon rate for a bond with a face value of $1,000, 24 years to maturity, a current price of $993, and a yield to maturity (YTM) of 9.09%?yield-to-maturity (internal rate of return). Calculate the yield-to- maturity for a bond with the following characteristics: face $1,000; coupon rate 8%; years until maturity 12; market price $1,125.
- What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to maturity, and a current price of $959? What is the modified duration? Duration is __. years. Modified duration is __ years.2. Consider a bond with a 7.5% annual coupon rate and a face value of $1,000. Calculate the bond price and duration & show your work. Years to Maturity Interest rate Bond Price Duration 4 6. 6. 9. What relationship do you observe between yield to maturity and the current market value? What is the relationship between YTM and duration?Assuming annual interest payments and a principal value of $100, what is the value of a 5-year 6.4% coupon bond when the discount rate is i) 4.6%, ii) 6.4%, and iii) 7.6% ? Show that your results are consistent with the relationship between the coupon rate, discount rate, and price relative to par value.
- Compute the Macaulay duration, modified duration and convexity of a coupon bond with face value F = 100, current price P 100, current price P = 92, maturity T I = 8% 4 years, that pays a semi-annual coupon of C =What is the duration of the following bond:$1,000par value,6%annual coupon, 4 years to maturity, and yield to maturity of6.5%? You will need your answer for the next question. In the prior question, what is the present value of the bond?What is the duration of a two-year bond that pays an annual coupon of 9 percent and has a current yield to maturity of 16 percent? Use $1,000 as the face value.