What is the duration of a bond with a $1,000 par value and a 7% coupon rate. The bond matures in 3 years (pays annual coupons) and has a 9 yield-to-maturity. Question 30 options: 0.50 years 0.52 years 2.80 years 3.14 years
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What is the duration of a bond with a $1,000 par value and a 7% coupon rate. The bond matures in 3 years (pays annual coupons) and has a 9 yield-to-maturity.
Question 30 options:
|
0.50 years |
|
0.52 years |
|
2.80 years |
|
3.14 years |
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- Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may be called in 4 years at a call price of 1,060. The bond sells for 1,100. (Assume that the bond has just been issued.) a. What is the bonds yield to maturity? b. What is the bonds current yield? c. What is the bonds capital gain or loss yield? d. What is the bonds yield to call?Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has a face value of $1,000 and a yield to maturity of 10.5883%. The bond pays coupons semiannually. What is the bond’s current yield?Bond Value as Maturity Approaches An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of 1,000, and has a yield to maturity equal to 9.6%. One bond, Bond C, pays an annual coupon of 10%; the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 9.6% over the next 4 years, what will be the price of each of the bonds at the following time periods? Fill in the following table:
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