A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a...
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A $1,000 face value bond matures in 11 years, pays interest semiannually, and has a 6.5 percent coupon. The bond currently sells for $1, 025. What is the yield to maturity? A) 6.17 percent B) 6.28 percent C) 6.34 percent D) 6.37 percent E) 6.18 percent A $1,000 face value bond has a 9.0 percent coupon and pays interest semiannually. The bond matures in 2 years and has a yield to maturity of 6.5 percent. What is the Macaulay duration? A) 1.88 years B) 2.19 years C) 1.65 years D) 1.18 years E) 2.03 years Continue from prior question. What is the modified duration for the bond? A) 1.82 years B) 1.97 years C) 1.60 years D) 1.14 years E) 2.12 years Continue from prior questions. What will be the percentage change in the bond price if the yield to maturity increase from 6.5 percent to 7 percent? A) -0.80 percent B) -0.57 percent C) -0.98 percent D) -1.06 percent E) -0.91 percent
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