Question

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.)

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, 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.)
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.)
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.)
(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 has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and...
bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What is its yield to maturity (YTM)? Round your answer to two decimal places.     % Assume that the yield to maturity remains constant for the next four years. What will the price be 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $  
A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon...
A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What is its yield to maturity (YTM)? Round your answer to two decimal places.     % Assume that the yield to maturity remains constant for the next two years. What will the price be 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $  
A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon...
A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095. What is its yield to maturity (YTM)? Round your answer to two decimal places. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon...
A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. What is its yield to maturity (YTM)? Round your answer to two decimal places.    % Assume that the yield to maturity remains constant for the next two years. What will the price be 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $  
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 %
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT