Question: Please help me answer these questions! A certain bond has a 6% coupon and the yield to maturity is 5%. Which of the following statements
Please help me answer these questions!
A certain bond has a 6% coupon and the yield to maturity is 5%. Which of the following statements is true?
a. a coupon rate equals the current yield
b. the coupon rate is less than the current yield
c. the bonds duration equals the time until maturity
d. none of the above
Find the duration of a 3 year bond that carries a 5% coupon rate and sells at par. Round the intermediate steps to four decimals.
a. .9568
b. 2.7298
c. 2.7694
d. 2.8594
e. cannot be determined
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
