Question: A $1000 face value bond with 3 years to maturity with a 12% coupon rate has a yield-to- maturity of 9%. What is the duration

A $1000 face value bond with 3 years to maturity with

A $1000 face value bond with 3 years to maturity with a 12% coupon rate has a yield-to- maturity of 9%. What is the duration of the bond? (round your answer to 2 decimals). Select one: O A. 3 years O B. 2.93 years O C. 2.84 years O D. 2.70 years O E. 2.64 years

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Healthy Selections Cereals Inc. (HSC) is a large food-processing company specializing in whole-grain, high-energy, low-calorie and low-fat cereals that appeal to the health-conscious consumer. HSC...

A $1000 face value bond with 3 years to maturity with a 12% coupon rate has a yield-to-maturity of 9%. What is the duration of the bond? (round your answer to 2 decimals). Select one: A. 3 years B....

A $1000 face value bond with 3 years to maturity with a 12% coupon rate has a yield-to-maturity of 9%. What is the duration of the bond? (round your answer to 2 decimals). Select one: O A. 3 years O...

A $1,000 face value bond with 3 years to maturity with a 11.0% coupon rate has a yield-to-maturity of 5.0%. What is the duration of the bond? The duration of the bond is years Enter your answer to 2...

A $1,000 face value bond has 10 years to maturity and a 8.2% coupon rate (interest is paid annually). If the price of the bond is $1,188.39, what is the yield to maturity? Group of answer choices...

A $1,000 face value bond has 15 years to maturity and a 7.6% coupon rate (interest is paid annually). If the price of the bond is $1,094.62, what is the yield to maturity? 6.59% 9.22% 4.83% 8.10%

A $1,000 face value bond has 16 years to maturity and a 4.8% coupon rate (interest is paid annually). If the price of the bond is $912.74, what is the yield to maturity? 5.64% 6.70% 4.23% O 7.13%

A $1,000 face value bond has 15 years to maturity and a 7.6% coupon rate (interest is paid annually). If the price of the bond is $1,094.62, what is the yield to maturity?

QUESTION 10 A. 8.26% B. 8.97% C. 8.07% D. 8.48% E. 7.69% Match the Weighted Average Cost of Capital to each of the scenarios given for ABC Corporation Target capital structure: 42% debt, 9% preferred...

QUESTION 2 Match the yield to maturity to each of these bonds. Each pays interest semi-annually - What is the yield to maturity for a $1,000 par value bond with 8 years to maturity that has a coupon...

Question 10 Not yet answered Marked out of 5.00 Flag question A $1000 face value bond with 3 years to maturity with a 9% annual coupon rate has a yield-to-maturity of 12%. What is the duration of the...

Your clients, Jim and Barbara, are both age 48. They have a household income of $127,500. She has $290,000 of investment/retirement assets saved, not including personal assets. He has $385,000 of...

What is the average rate of return for this investment? The management of NUBD Co. is considering the purchase of a new machien costing P400,000 with a salvage value of P50,000. The company's desired...

Under U . S . tax law, corporations are entities separate and distinct from their shareholders. Group startsTrue or False

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...