ion Nu....OEM FBAC9072A.C.. SupplementWareho.... 1-94 Admission Nu... is used fo

Question

ion Nu....OEM FBAC9072A.C.. SupplementWareho.... 1-94 Admission Nu... is used for discounting. ega D Question 2 10 pts Consider a coupon bond that has a S 1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to maturity What is the bond's yield to matunty to 2 decimal places? MTM)% D Question 3 10 pts Calculate the duration of a $1,000 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%. The duration to two decimal places is IDURl years F5 F7 F8 F9 F10

Explanation / Answer

Assuming you are looking the answer for question 2 since pic of question 3 looks incomplete:

Yield to maturity using financial calculator = 7.44%

Keys to use in financial calculator: FV = 1000, PV = -1150, PMT = 100, N = 8, CPT I/Y

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