Question

Both Bond Bill and Bond Ted have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity. Both bonds have a par value of 1,000. If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds?

Answer #1

Both Bond Bill and Bond Ted have 11.2 percent coupons, make
semiannual payments, and are priced at par value. Bond Bill has 4
years to maturity, whereas Bond Ted has 21 years to maturity. Both
bonds have a par value of 1,000.
If rates were to suddenly fall by 3 percent instead, what would
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Both Bond Bill and Bond Ted have 12.4 percent coupons, make
semiannual payments, and are priced at par value. Bond Bill has 5
years to maturity, whereas Bond Ted has 22 years to maturity. Both
bonds have a par value of 1,000.
If interest rates suddenly rise by 3 percent, what is the
percentage change in the price of these bonds? (A negative
answer should be indicated by a minus sign. Do not round
intermediate calculations and enter your answers...

Both Bond Sam and Bond Dave have 8 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has 5
years to maturity, whereas Bond Dave has 13 years to maturity.
If interest rates suddenly rise by 3 percent, what is the
percentage change in the price of Bond Sam?
If interest rates suddenly rise by 3 percent, what is the
percentage change in the price of Bond Dave?

Both Bond Sam and Bond Dave have 9 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has
three years to maturity, whereas Bond Dave has 16 years to
maturity. If interest rates suddenly rise by 2 percent, what is the
percentage change in the price of Bond Sam and Bond Dave? If rates
were to suddenly fall by 2 percent instead, what would be the
percentage change in the price of Bond Sam and Bond...

Both Bond Sam and Bond Dave have 7 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has 4
years to maturity, whereas Bond Dave has 16 years to maturity.
a) If interest rates suddenly rise by 5 percent, what is the
percentage change in the price of Bond Sam?
b) If interest rates suddenly rise by 5 percent, what is the
percentage change in the price of Bond Dave?
c) If rates were to suddenly...

Both Bond Sam and Bond Dave have 9 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has 2
years to maturity, whereas Bond Dave has 14 years to maturity.
If interest rates suddenly rise by 4 percent, what is the
percentage change in the price of Bond Sam?
If interest rates suddenly rise by 4 percent, what is the
percentage change in the price of Bond Dave?
If rates were to...

Both Bond Sam and Bond Dave have 9 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has 3
years to maturity, whereas Bond Dave has 20 years to maturity. If
interest rates suddenly rise by 2 percent, what is the percentage
change in the price of Bond Sam? Of Bond Dave? If rates were to
suddenly fall by 2 percent instead, what would the percentage
change in the price of Bond Sam be then? Of...

Both Bond Sam and Bond Dave have 9 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has 5
years to maturity, whereas Bond Dave has 11 years to maturity. If
interest rates suddenly rise by 4 percent, what is the percentage
change in the price of Bond Sam? If interest rates suddenly rise by
4 percent, what is the percentage change in the price of Bond Dave?
If rates were to suddenly fall by 4...

Both Bond Sam and Bond Dave have 7 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has six
years to maturity, whereas Bond Dave has 19 years to maturity.
a. If interest rates suddenly rise by 2 percent,
what is the percentage change in the price of Bond Sam and Bond
Dave? (A negative answer should be indicated by a minus sign. Do
not round intermediate calculations and enter your answers as a
percent rounded...

Both Bond Sam and Bond Dave have 8 percent coupons, make
semiannual payments, and are priced at par value. Bond Sam has five
years to maturity, whereas Bond Dave has 16 years to maturity.
If interest rates suddenly rise by 2 percent, what is the
percentage change in the price of Bond Sam and Bond Dave?
(Negative amounts should be indicated by a minus
sign. Do not round intermediate calculations and
enter your answers as a percent rounded to 2...

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