Question

(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

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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.)
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, 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.)
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%,...
CraMerica has 8% coupon bond issue with 8 years to maturity. Each of these bonds make...
CraMerica has 8% coupon bond issue with 8 years to maturity. Each of these bonds make semi-annual interest payments. These bonds have a yield to maturity of 10%. Suddenly, the yield to maturity on these bonds fall to 8%. What is the percentage change in the price of these bonds. Assume a par value of $1,000. Enter your answer to two decimal plances with no percentage sign. That is, like this: 13.61
CraMerica has 8% coupon bond issue with 8 years to maturity. Each of these bonds make...
CraMerica has 8% coupon bond issue with 8 years to maturity. Each of these bonds make semi-annual interest payments. These bonds have a yield to maturity of 10%. Suddenly, the yield to maturity on these bonds fall to 8%. What is the percentage change in the price of these bonds. Assume a par value of $1,000. Enter your answer to two decimal plances with no percentage sign. That is, like this: 13.61
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 %
Consider the following semi-annual coupon bond: $1,000 par value; 5 years until maturity; 7% coupon rate;...
Consider the following semi-annual coupon bond: $1,000 par value; 5 years until maturity; 7% coupon rate; YTM of 6%. Calculate the bond’s price today. NOTE: This is a coupon bond. Please show all work
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT