# Question: Compute Macaulay and modified durations for the following bonds a A

Compute Macaulay and modified durations for the following bonds:

a. A 5-year bond paying annual coupons of 4.432% and selling at par.

b. An 8-year bond paying semiannual coupons with a coupon rate of 8% and a yield of 7%.

c. A10-year bond paying annual coupons of 6% with a price of $92 and maturity value of $100.

a. A 5-year bond paying annual coupons of 4.432% and selling at par.

b. An 8-year bond paying semiannual coupons with a coupon rate of 8% and a yield of 7%.

c. A10-year bond paying annual coupons of 6% with a price of $92 and maturity value of $100.

## Answer to relevant Questions

Consider the following two bonds which make semiannual coupon payments: a 20 year bond with a 6% coupon and 20% yield, and a 30-year bond with a 6% coupon and a 20% yield. a. For each bond, compute the price value of a basis ...Suppose you observe the following effective annual zero-coupon bond yields: 0.030 (1-year), 0.035 (2-year), 0.040 (3-year), 0.045 (4-year), 0.050 (5-year). For each maturity year compute the zero-coupon bond prices, ...Suppose that 1- and 2-year oil forward prices are $22/barrel and $23/barrel. The 1 and 2-year interest rates are 6% and 6.5%. Show that the new 2-year swap price is $22.483. Using the assumptions in Tables 8.5 and 8.6, verify that equation (8.13) equals 6%. Given an 8-quarter oil swap price of $20.43, construct the implicit loan balance for each quarter over the life of the swap.Post your question