The duration of these bonds is 8.1702 years. What are the predicted bond prices in each of the four cases using the duration rule? (the cases being ± 0.10 percent and ± 2.00 percent)
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MLK Bank has an asset portfolio that consists of $180 million of 15-year, 10.5 percent annual coupon, $1,000 bonds that sell at par.
b-1. The duration of these bonds is 8.1702 years. What are the predicted
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- Brown Enterprises’ bonds currently sell for $1,025. They have a 9-year maturity, an annual coupon of $80, and a par value of $1,000. What is the bond's YTM (Yield to Maturity) and it Current Yield? use excel formatWhat is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value of $1,000, and a coupon rate of 9 percent (paid semiannually). The bonds’ current market values are $945.50, $987.50, $1,090.00, and $1,225.875, respectively.Three Zero Coupon Bonds (ZCB) are issued on the market. They each have face value of £100 and maturity, respectively, of 1 year, 3 years and 4 years. Assume the first bond is sold for £99.01, the second one for £92.86 and the third one for £88.85. a) Find the annual effective yields of all three bonds. b) (Determine the term structure of forward rates associated with these bonds. c) An investor must pay £1,500 after four years. How much do they need to put aside at the end of the first year, if they decide to invest in the market?