Which of the following bonds would be cheapest to deliver given a T-note futures price...
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Finance
Which of the following bonds would be cheapest to deliver given a T-note futures price of 89.4339? (Assume that all bonds have semiannual coupon payments based on a par value of $100.)
a. 8-year bond with 5.5% coupons and a yield of 5%
b.7.5-year bond with 8.5% coupons and a yield of 8%
c.8.5-year bond with 6% coupons and a yield of 6.5%
Compute the Macaulay duration for a 17-year zero-coupon bond having a yield to maturity of 5%.
a. 17.00
b. 15.99
c. 16.19
d.17.32
e. 16.84
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b.7.5-year bond with 8.5% coupons and a yield of 8%