Question: A bond has a Macaulay duration equal to 6 . 0 and a yield to maturity of 4 . 0 % . What is the

A bond has a Macaulay duration equal to 6.0 and a yield to maturity of 4.0%. What is the modified duration of this bond?
The modified duration of this bond is
(Round to two decimal places.)
A bond has a Macaulay duration equal to 6.0 and a

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!

Q:

1. What is the price of a straight bond with: $1,000 face value, coupon rate of 8%, YTM of 7%, and a maturity of 20 years? (You can use the formula, or excel) 2. A bond that traded today (March 22nd,...

Q:

2. A bond that traded today (March 22nd, 2021) matures in 5 years (March 22nd 2026). The coupon rate is 5% paid semiannually, and the bond is selling for $950. (Par value of $100). What is the YTM?...

Q:

3. Suppose you buy a 5-year bond with a 10 percent annual coupon, payable semiannually. The next coupon payment is in three months. Assuming a par value of $1,000, and price of $1,020, what is the...

Q:

Suppose a bond has a Macaulay Duration of 7.5 years and a current yield to maturity of 6%. If the yield to maturity increases to 7%, what is the resulting percentage change in the price of the bond?...

Q:

A bond has a Macaulay duration equal to 11.5 and a yield to maturity of 9.5%. What is the modified duration of this bond? The modified duration of this bond is (Round to two decimal places.) A bond...

Q:

FIN334 Section 1 Spring 2022 Homework: Assignment 8 Question 15, P11.29 (similar to A bond has a Macaulay duration equal to 5.0 and a yield to maturity of 3.0%. What is the modified duration of this...

Q:

estion list WUESIIII 0 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 A bond has a Macaulay duration equal to 9.5 and a yield to maturity of 7.5%. What is the modified...

Q:

P11.23 A bond has a Macaulay duration equal to 8.3 and a yield to maturity of 6.2%. What is the modified duration of this bond? P11.24 A bond has a Macaulay duration of 8.42 and is priced to yield...

Q:

You purchased a bond with the following characteristics: $1,000 par value 6.5% coupon, annual payments 25 years to maturity Callable in 7 years at $1,065. You paid $1063.92 for the bond. Macaulay...

Q:

You purchased a bond with the following characteristics: $1,000 par value 6.5% coupon, annual payments 25 years to maturity Callable in 7 years at $1,065. You paid $1063.92 for the bond. Macaulay...

Q:

Refer to Figure 2 on page 691 of Original Source 11, linked to the companion website, Driving impairment due to sleepiness is exacerbated by low alcohol intake. a. What type of picture is in the...

Q:

If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point (dollars)? a. $1,875,000 b. $300,000 c. $2,500,000 d. $1,250,000

Q:

A virtual machine can be switched like a process in the operating system. A virtual machine can be switched like a process in the operating system. True False

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

3 Rather than dressing it up as marketing experience, might there be an honest way to use your restaurant experience to your advantage here?

Q:

5. Your father asks if youll be coming home for the holidays this year. A. I have a life, you know. B. Ill do the best I can. C. I can visit for three days, December 27 to 29.

Q:

B Will you follow your friends suggestion to use vague expressions like team player? In what ways might you use more precise terms to describe yourself?