Question: Financial Institutions and Markets Fall 2021 Practice Problems for Chapter 8 What is the Duration and Modified duration of a 1,000 face value bond, 3

Financial Institutions and Markets Fall 2021 Practice Problems for Chapter 8 What is the Duration and Modified duration of a 1,000 face value bond, 3 years to maturity, YTM is 8%, coupon Rate is 8%, and coupon payments are annual? What is the Price of a 1,000 semi-annual coupon bond, coupon rate is 5%, YTM is 7%, maturity is 5 years? What is the Price of a zero coupon bond with a face value of 100,000, matures in 5 years, and has a YTM of 7%? What is the price of a 1000 annual coupon bond, coupon rate of 6%, matures in 12 years, and YTM is 8%? What is the price if the YTM increases to 9%? What is the price if the YTM decreases to 7%? What is the price of a zero coupon bond that matures in 8 years with an YTM of 11%? What is the modified duration of a bond with a duration of 6 years and a YTM of 11%

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