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Suppose a semiannual coupon bond with a 7% annualized coupon rate has an annual yield of...

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Finance

Suppose a semiannual coupon bond with a 7% annualized couponrate has an annual yield of 5% compounded semiannually. It maturesin 10 years to its face of $10,000. 1)Compute the price. 2) Whatits modified duration?

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1Price of the Bond The Current Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the face Value Face Value of the bond 10000 Semiannual Coupon Amount 350 10000 x 7 x Semiannual Yield to Maturity 250 5 x Maturity Period 20 Years 15 Years x 2 The Price of the Bond Present Value of the Coupon Payments Present Value of the face Value 350PVIFA 250 20 Years    See Answer
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Suppose a semiannual coupon bond with a 7% annualized couponrate has an annual yield of 5% compounded semiannually. It maturesin 10 years to its face of $10,000. 1)Compute the price. 2) Whatits modified duration?

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