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Calculate respective dollar durations for four securities

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Reference no: EM133112768

There are four securities as summarized in the below table.

Bond

Coupon Rate (%)

Maturity (in years)

Par Value (in dollars)

Market Values (in dollars)

Yield to Maturity (%)

A

5.5%

5

$ 10,000

$ 9,786.74

6.00%

B

4.25%

4

$ 20,000

$ 19.113.21

5.50%

C

3.75%

3

$ 30,000

$ 29,170.32

4.75%

D

5.625%

8

$ 40,000

$ 38.323.53

6.30%

(1) Calculate the respective dollar durations for four securities.  

(2)  Calculate the market-value-weighted yield.

(3) Calculate the duration-dollar-weighted yield.

Reference no: EM133112768

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