Compute the modified duration of a 9% coupon, 3-year corporate bond with a yield to maturity of 12%.
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Compute the modified duration of a 9% coupon, 3-year corporate bond with a yield to
maturity of 12%.
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- Calculate and interpret the Macaulay and modified durations of a 2-year semiannual coupon bond with 4% coupon per annum and a yield to maturity of 4.8% compounded semiannually.Compute the yield to maturity on a 3 year maturity,16% coupon bond purchased at 985₺.Compute the yield to maturity of a 3-year maturity 16% bond purchased at 970₺, whose nominal value will be repaid at the end of maturity. Start with 17%.
- Prepare a duration table for a coupon bond using the following assumptions: a. $100,000 par value b. 7% coupon rate c. 10-year maturity d. Annual interest payments e. Discount rate of 12%Prepare a duration table for a zero-coupon bond using the following assumptions: a. $100,000 par value b. 10-year maturity c. Discount Rate of 12%Calculate the duration of a $1,000, 6% coupon bondwith three years to maturity. Assume that all marketinterest rates are 7%
- Assume that a company issues a new bond with coupon rate of 11 %, 5% yield and $100 par value bond. Coupon is paid annually. The bond has three years to maturity. (1) What is the Macaulay duration of this bond? (ii) How would you interpret the result obtained in part (e)(i) above?Calculate price and Macauley duration for a 7% bond with semiannual coupon payments, 6 years to maturity and a ytm of 6.5 % .Estimate the duration of a par-value bond with a coupon rate of 6.5% and a remaining time to maturity of 4 years. The face value is $1000.
- Assume that a company issues a new bond with a coupon rate of 13 %, 7% yield and $110 par value bond. Coupon is paid annually. The band has three years to maturity. Calculate and interpret the Macaulay duration of this bond? (ii) Discuss about some possible limitations of the Macaulay duration.Compute the yield to maturity of a 4-year maturity 16% bond purchased at 975 ₺, whose nominal value will be repaid at the end of maturity. Start with 17%.Assume that a company issues a new bond with coupon rate of 13 %, 7% yield and $110 par value bond. Coupon is paid annually. The bond has three years to maturity. Calculate and interpret the Macaulay duration of this bond?