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Please help me out with these questions:

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Please help me out with these questions;1. What is the Macaulay duration of a 5.4 percent coupon bond with nine years to maturity and a current price of $1,055.40? What is the modified duration?;2. Consider a 8.4 percent coupon bond with eleven years to maturity and a current price of $1,041.40. Suppose the yield on the bond suddenly increases by 2 percent.;a. Use duration to estimate the new price of the bond;b. Calculate the new bond price;3. There is a 6.8 percent coupon bond with eight years to maturity and a current price of $1,071.30. What is the dollar value of an 01 for the bond?;4. A Treasury bond with 6 years to maturity is currently quoted at 110:14. The bond has a coupon rate of 11.1 percent. What is the yield value of a 32nd for this bond?;Additional Requirements;Level of Detail: Show all work

 

Paper#27804 | Written in 18-Jul-2015

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