Compute the duration of the bond

Reference no: EM131458239

Question: A coupon bond has a life of 5 years, makes semiannual coupon payments at the rate of 6 percent per year, has a principal of $100, and a market price of $95.

a. Using Excel, compute this bond's yield to maturity.

b. Compute the duration of the bond.

Reference no: EM131458239

Questions Cloud

Development of big metropolitan areas : Explain how the continuing mobility of US consumers as well as the development of big metropolitan areas should affect marketing strategy planning in the future

Define risk-neutral valuation : In the floor let example, value the floor let using risk-neutral valuation and show you get the same answer as in the text.

Identify the amount that should be transferred out : From the information in the process cost report, identify the amount that should be transferred out of the Work in Process Inventory account.

Understanding of consumer learning processes : Explain how an understanding of consumer's learning processes might affect marketing strategy planning. Give an example.

Compute the duration of the bond : A coupon bond has a life of 5 years, makes semiannual coupon payments at the rate of 6 percent per year, has a principal of $100, and a market price of $95.

Difference between a project and product life cycle : Explain the phases of a project's life cycle and provide one similarity and one difference between a project and product life cycle. Apa citation and reference.

Create a page that allow the user to change their password : The database will contain a table: Create a page that allow the user to change their password. Then you should login to see if the change took effect.

Find examples of recent project designs or purchases : find examples of recent project designs or purchases that you think would have been made safer through a safety design review process.

Compute the actual change in bond prices : Bondy Bond (fictitious name) is a coupon bond that matures in 10 years. The coupon rate is 5 percent per year. The bond's principal is $10,000 and the market.

User Account

All Pages