Question

A bond with a $1,000 par, 6 years to maturity, a coupon rate of 4%, and...

A bond with a $1,000 par, 6 years to maturity, a coupon rate of 4%, and annual payments has a yield to maturity of 4.3%. What will be the actual percentage change in the bond price if the yield changes instantaneously to 5.5%? (If your answer is, e.g., 1.123%, enter it as 1.123.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A bond with a $1,000 par, 7 years to maturity, a coupon rate of 4%, and...
A bond with a $1,000 par, 7 years to maturity, a coupon rate of 4%, and annual payments has a yield to maturity of 4%. What will be the actual percentage change in the bond price if the yield changes instantaneously to 5.5%? (If your answer is, e.g., 1.123%, enter it as 1.123.)
14. (Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon rate of...
14. (Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon rate of 5%, and annual payments has a yield to maturity of 4.3%. What will be the percentage change in the bond price if the yield changes instantaneously to 5%? (If your answer is, e.g., -1.123%, enter it as -1.123. If the sign of the price change is incorrect, no credit will be given.)
A bond with a $1,000 par, 5 years to maturity, a coupon rate of 5%, and...
A bond with a $1,000 par, 5 years to maturity, a coupon rate of 5%, and annual payments has a yield to maturity of 3.4%. What will be the actual percentage change in the bond price if the yield changes instantaneously to 5.6%? (If your answer is, e.g., 1.123%, enter it as 1.123.)
(Bonds) A bond with a $1,000 par, 5 years to maturity, a coupon rate of 5%,...
(Bonds) A bond with a $1,000 par, 5 years to maturity, a coupon rate of 5%, and annual payments has a yield to maturity of 3.4%. What will be the percentage change in the bond price if the yield changes instantaneously to 5.8%? (If your answer is, e.g., -1.123%, enter it as -1.123. If the sign of the price change is incorrect, no credit will be given.) Please and thanks
1. Why are long-term, fixed-rate bond values more sensitive to interest rate changes than short-term, fixed-rate...
1. Why are long-term, fixed-rate bond values more sensitive to interest rate changes than short-term, fixed-rate bond values? (Maximum 4 sentences, maximum 100 words.) 2. 2 years ago, you paid $1069 for a $1,000 par bond that has a 7% coupon with semiannual payments. You are selling it today for $1000. You reinvested coupons at the 2.2% annual rate. What is your total return? (Report your answer to two decimals, without the % symbol. E.g., if your answer is 5.1538%,...
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10...
Bond 1 Coupon rate 6% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 10 2. (10 points) Compute the following yields: a) the yield to maturity for Bond 1, above, if the current bond price is $875. b) the yield to call for Bond 1 if its current price is $1050 and it is callable in 4 years at a value of par plus one year’s coupon interest.
A $1,000 par bond with a 4% semi-annual coupon has 15 years to maturity trades at...
A $1,000 par bond with a 4% semi-annual coupon has 15 years to maturity trades at a yield of 6%. What would be it’s price?
Consider the following bonds: Coupon Rate Maturity Bond (annual payments) (years) A 0% 15 B 0%...
Consider the following bonds: Coupon Rate Maturity Bond (annual payments) (years) A 0% 15 B 0% 10 C 4% 15 D 8% 10 a. What is the percentage change in the price of each bond if its yields to maturity falls from 6% to 5%? Par value Yield to maturity Price at Percentage Bond Coupon Rate Maturity Price 5.00% Change A B C D b. Which of the bonds A–D are most sensitive to a 1% drop in interest rates...
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate...
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.) Bond equivalent yield to maturity % Effective annual yield to maturity %
1. Omega Enterprises has an 8% coupon bond with exactly 16 years to maturity. Interest is...
1. Omega Enterprises has an 8% coupon bond with exactly 16 years to maturity. Interest is paid semi-annually. The bond is priced at $1,125 per $1,000 of face value. a.) What is the yield to maturity on this bond? b.)An investor purchased the bond at $1,125 and sold it 5 years later at a price of $1,023. What was the investor’s return. (Hint: calculate the YTM as in a) above but use the sale price as the future value. 2....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT