Calculate the duration of a two-year corporate bond

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1. The current stock price for a company is $46 per share, and there are 3 million shares outstanding. This firm also has 100,000 bonds outstanding, which pay interest semiannually. If these bonds have a coupon interest rate of 8%, 21 years to maturity, a face value of $1,000, and an annual yield to maturity of 8%, what is the total market value of this firm?

2. Calculate the duration of a two-year corporate bond paying 6 percent interest annually, selling at par. Principal of $20,000,000 is due at the end of two years.

Reference no: EM131933554

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