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    Bond Yield and Duration

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    Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities:

    Bond Coupon (%) Price (%)
    2 81.62
    4 98.39
    8 133.42
    ________________________________________

    a. What is the yield to maturity for each bond? (Round to 1 decimal place.)

    Bond Coupon (%) YTM
    2 %

    4 %

    8 %

    ________________________________________

    b. Which bond offered the highest yield to maturity?

    2% coupon bond

    4% coupon bond

    8% coupon bond

    c. Which bond offered the lowest yield to maturity?

    8% coupon bond

    2% coupon bond

    4% coupon bond

    d-1. Which bond had the longest duration?

    2% coupon bond

    4% coupon bond

    8% coupon bond

    d-2. Which bond had the shortest duration?

    2% coupon bond

    4% coupon bond

    8% coupon bond

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    https://brainmass.com/business/accounting/bond-yield-and-duration-585529

    Solution Summary

    Excel spreadsheet attached answers multiple questions on bond yield, duration and coupons with calculations visible by selecting cells.

    $2.19