Question: A. Questions 1 to 4 Consider a bond with two year remaining to maturity, a $1,000 face value, an 8 percent coupon rate (paid annually).

A. Questions 1 to 4 Consider a bond with two year remaining to maturity, a $1,000 face value, an 8 percent coupon rate (paid annually). and an interest rate (either required rate of return or yield to maturity) of 10 percent. 1. How much is the present value of the bond? 2. How much is the Duration of the bond? 3. 4. How much is the modified Duration of the bond? Use the duration computed above, calculate the change of the bond price in percentage if the required return moves up by so basis points 1 a. 950.3 b. 955.3 c. 960.3 d. 9653 e. 9703 f 9753980.3 h. 9853 9903 1.8SS b. 1.865 c. 1.875 d. 1885 e. 1895 . i90S g. ins h iss . a. 15S b. 1.65 175 d 1.85 1.95 . 2.05 2.15 h1.25 2.35 4 a. 4875% b. -0.625% c. -Q375% d. -Q125% e. 0.125% t. 0375% g. 0625% h, 0875% L 1.125% S. A 12-year annual payment corporate bond has a market price of $925, it pays annual interest of $60 and its required rate of return is uch is the bond mispriced

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