Homework Answers
Percentage change in price = -Modified duration * change in yield
Percentage change in price = -13.8 * (-0.01)
Percentage change in price = 0.138 or 13.8%
The bond price should increase by approximately by 13.8%
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A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its...
A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its...
A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5.
Suppose its yield to maturity goes down one percentage point (e.g.,
from 5% to 4%). Which of the following is most likely to be true?
[Hint: 1% = 100 basis points]
The bond's price should decrease by approximately $14.6. The bond's price should increase by approximately $13.8. The bond's price should increase by approximately $2.5. The bond's price should increase by approximately 13.8%. E The bond's...
A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its yield to maturity goes down one percentage point (...
A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5. Suppose its yield to maturity goes down one percentage point (e.g., from 5% to 4%). Which of the following is most likely to be true? [Hint: 1% = 100 basis points] A The bond's price should decrease by approximately $14.6. B The bond's price should increase by approximately $13.8. C The bond's price should increase by approximately $2.5. D The bond's price should increase by approximately...
I am sorry that I have uploaded more than one question, because I still have many...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1.
2.
Example 5.12: A company had total revenues of $200 million, operating profit margin of 20%, and depreciation and amortization expense of $10 million over the trailing twelve months. The company currently...
A semi-annual coupon bond has MacD of 25.6 years, yield-to-maturity of 5.1%, and price of $1146.43....
A semi-annual coupon bond has MacD of 25.6 years, yield-to-maturity of 5.1%, and price of $1146.43. What is its DV01? Answer in dollars, rounded to three decimal places.
A semi-annual coupon bond has MacD of 27.0 years, yield-to-maturity of 4.0%, and price of $1200.00....
A semi-annual coupon bond has MacD of 27.0 years, yield-to-maturity of 4.0%, and price of $1200.00. What is its DV01? Answer in dollars, rounded to three decimal places.
A semi-annual coupon bond has MacD of 26.7 years, yield-to-maturity of 4.2%, and price of $1189.29....
A semi-annual coupon bond has MacD of 26.7 years, yield-to-maturity of 4.2%, and price of $1189.29. What is its DV01? Answer in dollars, rounded to three decimal places.
A semi-annual coupon bond has MacD of 25.9 years, yield-to-maturity of 4.9%, and price of $1157.14....
A semi-annual coupon bond has MacD of 25.9 years, yield-to-maturity of 4.9%, and price of $1157.14. What is its DV01? Answer in dollars, rounded to three decimal places.
A semi-annual coupon bond has MacD of 27.0 years, yield-to-maturity of 4.0%, and price of $1200.00....
A semi-annual coupon bond has MacD of 27.0 years, yield-to-maturity of 4.0%, and price of $1200.00. What is its DV01? Answer in dollars, rounded to three decimal places.
Question 2 Homework. Unanswered A semi-annual coupon bond has MacD of 25.3 years, yield-to-maturity of 5.3%,...
Question 2 Homework. Unanswered A semi-annual coupon bond has MacD of 25.3 years, yield-to-maturity of 5.3%, and price of $1135.71. What is its DV01? Answer in dollars, rounded to three decimal places. Numeric Answer: Unanswered 3 attempts left Submit Question 3 Homework Unanswered You own a bond portfolio worth $51,000. You estimate that your portfolio has an average YTM of 5.9% and a Modified Duration of 14 years. If your portfolio's average YTM were to decrease by 4 basis points,...
A bond has a Macaulay duration of 9.50 and is priced to yield 7.5%. If interest...
A bond has a Macaulay duration of 9.50 and is priced to yield 7.5%. If interest rates go up so that the yield goes to 8.0%, what will be the percentage change in the price of the bond? Now, if the yield on this bond goes down to 7%, what will be the bond's percentage change in price? Comment on your findings. If interest rates go up to 8.0%, the percentage change in the price of the bond is %....
A bond has a MacD of 14.6, ModD of 13.8 and DV01 of $2.5.
Suppose its yield to maturity goes down one percentage point (e.g.,
from 5% to 4%). Which of the following is most likely to be true?
[Hint: 1% = 100 basis points]
The bond's price should decrease by approximately $14.6. The bond's price should increase by approximately $13.8. The bond's price should increase by approximately $2.5. The bond's price should increase by approximately 13.8%. E The bond's...
I
am sorry that I have uploaded more than one question, because I
still have many questions, but there are no more questions. I hope
you can help me answer this question. If you can only answer one
question, please do not answer this question, thank you.
1.
2.
Example 5.12: A company had total revenues of $200 million, operating profit margin of 20%, and depreciation and amortization expense of $10 million over the trailing twelve months. The company currently...
Question 2 Homework. Unanswered A semi-annual coupon bond has MacD of 25.3 years, yield-to-maturity of 5.3%, and price of $1135.71. What is its DV01? Answer in dollars, rounded to three decimal places. Numeric Answer: Unanswered 3 attempts left Submit Question 3 Homework Unanswered You own a bond portfolio worth $51,000. You estimate that your portfolio has an average YTM of 5.9% and a Modified Duration of 14 years. If your portfolio's average YTM were to decrease by 4 basis points,...
A bond has a Macaulay duration of 9.50 and is priced to yield 7.5%. If interest rates go up so that the yield goes to 8.0%, what will be the percentage change in the price of the bond? Now, if the yield on this bond goes down to 7%, what will be the bond's percentage change in price? Comment on your findings. If interest rates go up to 8.0%, the percentage change in the price of the bond is %....
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