Find the duration of this bond

Assignment Help Financial Management

Reference no: EM131836217

A bond has the following features:

a) Inputs:

i) Coupon Rate (6%)

ii) Coupon payments per year (2)

iii) Par value ($100)

iv) Yield to maturity (9%)

v) Settlement date (01/01/01)

vi) Maturity date (01/01/26) (i.e. 25 years to maturity)

Please conduct the sensitivity analyses.

(1) find the Duration of this bond

(2) Examine the sensitivity of a bond’s price to changes in the yield to maturity. Use yield ranging from 1% to 13% in increments of 0.5% (left-hand column).

(3) Examine the sensitivity of a bond’s price to its term to maturity. Use maturities ranging from 5 to 30 years, in increments of 5 years.

(4) Examine the sensitivity of a bond`s duration to changes in the yield to maturity. Use yield ranging from 1% to 13% in increments of 0.5% (left-hand column).

Reference no: EM131836217

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