Bond calculation

 

 

 

A 16-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.75%. Coupon is to be paid semi-annually. The reported annual yield to maturity is 5.4%. Solve the following questions:
a) What is the present value of the bond?
b) What is the duration of the bond?
c) If the yield to maturity changes to 1%, what will be the present value?
d) If the yield to maturity changes to 8%, what will be the present value?
e) If the yield to maturity changes to 15%, what will be the present value?

 

 

 

Sample Solution

 

 

Travelers : Trailblazers Of The Sky

Traveler: Sky Pioneer “Traveler” is one of the most engaging words in English. It’s been moved by the character which is secured with cowhide, blurred wooden away from sky on head of the structure, were traveled through the dazzling onlookers gathering and emotional perilous tricks, the distinctive shades of the propeller machine picture It reminds me. These pictures are striking, you can smell the smell of new roughage drifting in the breeze; the greater part of that jerky airplane propeller when it goes through the fresh spring air.

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