A 6.7% coupon bearing bond that pays interest semi-annually has a yield to maturity of 6.3% per year. If the bond has a duration of 13.2 years and the market yield decreases 32 basis points, calculate an estimate of the percent price change due to duration alone. (Answer to the nearest hundredth of a percent, i.e. 1.23 but do not use a % sign).
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
AS YIELD HAS DECREASED, THERE WILL A PRICE INCREASE, SO POSITIVE CHANGE. THANK YOU
A 6.7% coupon bearing bond that pays interest semi-annually has a yield to maturity of 6.3% per y...
A 6% coupon bearing bond pays interest semi-annually and has a maturity of 21 years. If the current price of the bond is $1,074.49, what is the yield to maturity of this bond? (Answer to the nearest hundredth of a percent, e.g. 12.34%)
A 5.4% coupon bearing bond pays interest semi-annually and has a maturity of 8 years. If the current price of the bond is $1,067.57, what is the yield to maturity of this bond? (Answer to the nearest tenth of a percent, e.g. 12.34%)
A $1000 par value bond has a coupon rate of 7.8%, pays interest semi-annually, matures in 26 years, and is priced at a 58.28 discount from par value. What is the annual yield to maturity of this bond? (Answer to the nearest one hundedth of a percent, i.e., 1.23 but do not include the % sign).
A bond has a $1,000 face value and a $1,146 market value. The bond pays interest semi-annually, has a yield-to-maturity of 7.47 percent, and matures in 10 years. What is the current yield?
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
Show all work: A 7-year, 8% coupon bond pays interest semi-annually. The bond has a face value of $1,000. What is the price of this bond if the yield to maturity is 4.0%?
-What is the yield to call of a 30-year to maturity bond that pays a coupon rate of 11.98 percent per year, has a $1,000 par value, and is currently priced at $918? The bond can be called back in 7 years at a call price $1,089. Assume annual coupon payments. -Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 17 years and a yield to maturity of 10.23 percent,...
A 6-year 5% bond is selling to yield 6%. The bond pays interest semi-annually. Using the approximate formula What is the estimated bond price for 150 basis points decrease in the yield, using approximate duration formula to estimate the new price? What would explain the difference between the estimated bond price and the actual bond price you find using the financial calculator? How can you correct the mispricing? Please provide calculations for the correction.
Suppose a bond matures in 4 years with a coupon rate of 6% paid semi-annually and a yield-to-maturity of 10%, has a duration of 3.02. Using modified duration, what is the percentage change in price of the bond if the interest rate (ie, yield) decreases by 0.5%? A.-1.44% B.-0.50% OC. 0.50% CD. 1 .44%
Consider a 10 year bond with face value $1,000, pays 6% coupon semi-annually and has a yield-to-maturity of 7%. How much would the approximate percentage change in the price of bond if interest rate in the economy decreases by 0.80% per year? (i) Describe and interpret the assumptions related to the problem. (ii) Apply the appropriate mathematical model to solve the problem. (iii) Calculate the correct solution to the problem