What is the market price

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Q1. Consider a bond that has a 30 year maturity, an 8% coupon rate, and sells at an initial yield of 8%. The face value of the bond is 1000. What is the duration? What is the market price?

Q2. Consider a bond that has a 20 year maturity, an 7.5% coupon rate, and sells at an initial yield of 8%. The face value of the bond is 1000. What is the duration? What is the market price?

Q3. Consider a bond that has a 15 year maturity, an 7% coupon rate, and sells at an initial yield of 8%. The face value of the bond is 1000. What is the market price?

Q4. Suppose you invest in zero coupon bonds. One matures in 2 years, paying 100 and it price is 65. The other matures in 3 years, paying 110. Its price is 70.

a. What is the coupon interest?

b. What is the yield on each bond?

c. What is the duration for each bond?

Reference no: EM132980994

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