1.) A bond pays semiannual interest payments of $42.50. What is the coupon rate if the par value is $1,000?
2.) You are buying a bond at a quoted price of $892. The bond has a 7.5 percent coupon and pays interest semiannually on February 1 and August 1. What is the dirty price of this bond if today is April 1? Assume a 360-day year.
3.) A bond has a Macaulay duration of 6.25 years. What will be the percentage change in the bond price if the yield to maturity increases from 6 percent to 6.4 percent?
4.) The price of a bond decreased by 1.45 percent in response to an increase in the yield to maturity from 7.2 to 7.6 percent. What is the bond's Macaulay duration?
5.) A bond has a Macaulay duration of 5.5, a yield to maturity of 6.1 percent, a coupon rate of 7.0 percent, and semiannual interest payments. What is the bond's modified duration?
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