Question: There are four securities as summarized in the below table. Bond Coupon Rate (%) Maturity (in years) Par Value (in dollars) Market Values (in dollars)

There are four securities as summarized in the below table.

Bond Coupon Rate (%) Maturity (in years) Par Value (in dollars) Market Values (in dollars) Yield to Maturity (%)
A 5.5% 5 $ 10,000 $ 9,786.74 6.00%
B 4.25% 4 $ 20,000 $ 19.113.21 5.50%
C 3.75% 3 $ 30,000 $ 29,170.32 4.75%
D 5.625% 8 $ 40,000 $ 38.323.53 6.30%

(1) Calculate the respective dollar durations for four securities.

(2) Calculate the market-value-weighted yield.

(3) Calculate the duration-dollar-weighted yield.


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