Question: A bond with a ten percent coupon rate bond pays interest semi-annually. Par value is $1,000. The bond has 5 years to maturity. The investors' required rate of return is 10 percent. What is the present value of the bond?
A $1,000 par bond with five years to maturity is currently priced at $902. Annual interest payments are $90. What is the yield to maturity?
Assume a bond with a $1,000 par value and an 8 percent coupon rate, two years remaining to maturity, and a 7 percent yield to maturity. What is the duration of this bond?