A bond currently sells for $1,120, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,070. What is the duration of this bond?

  1. 👍 0
  2. 👎 0
  3. 👁 379
  1. 65

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Banking Finance

    A 10-year bond of face value 100 CCU and coupon rate of 8% was issued exactly six years ago. If the yield to maturity today is 7%, what would be the price of the bond today?

  2. Math

    The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds

  3. Finance

    Which of the following statements about the relationship between yield to maturity and bond prices is FALSE? A. When the yield to maturity and coupon rate are the same, the bond is called a par value bond. B. A bond selling at a

  4. math

    Consider an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. The interest rates in the next three years will be, with certainty, r1 = 8%, r2 = 10%, and r3 = 12%. Calculate the yield

  1. Finance

    A 7.10 percent coupon bond with 14 years left to maturity is priced to offer a yield to maturity of 7.9 percent. You believe that in one year, the yield to maturity will be 7.4 percent. What is the change in price the bond will

  2. finance

    The Corner Grocer has a 7-year, 6 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly

  3. Finance

    Bond Pricing: A 6-year Circular File bond pays interest of $80 annually and sells for $950. What is its coupon rate, current yield, and yield to maturity? Bond Pricing : If the Circular File wants to issue a new 6-yar bond at face

  4. Fiance

    What must be the price of a $10,000 bond with a 6.5% coupon rate, semi-annual coupons, and two years to maturity if it has a yield to maturity of 8% APR?

  1. Finance

    A 20-year, $1,000 par value bond has a 9% annual coupon. The bond currently sells for $925. If the yield to maturity remains at its current rate, what will the price be 5 years from now

  2. Accounting

    Go to Table 10-1 which is based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent: A. What is the bond price at 11%? B. What is the bond

  3. finance

    Jiminy's Cricket Farm issued a 30-year, 7.2 percent semiannual bond 9 years ago. The bond currently sells for 85.5 percent of its face value. The book value of this debt issue is $107 million. In addition, the company has a second

  4. Financial Management

    A 10 year bond pays 11% interest on a $1000 face value annually. If it currently sells for $1,195, What is its approximate yield to maturity? a)9.33% b)7.94% c)12.66% d)8.10%

You can view more similar questions or ask a new question.