Question

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).

Answer #1

**AS YIELD HAS DECREASED, THERE WILL A PRICE INCREASE, SO
POSITIVE CHANGE. THANK YOU**

How do I get to the correct answer?
A 6.5% coupon bearing bond that pays interest semi-annually has
a yield to maturity of 8.2% per year. This bond has a duration of
13.1 years and a convexity of 134. If the market yield decreases 64
basis points, calculate an estimate of the percent price change due
to both duration and convexity. (Answer to the nearest hundredth of
a percent, i.e. 1.23 but do not use the % sign). Selected Answer:...

A 8.5% coupon bearing bond pays interest semi-annually and has a
maturity of 6 years. If the annual yield to maturity is 5.6%, what
is the current price of this bond? (Answer to the nearest penny,
i.e. 999.99 but do not use a $ sign.)

A 5.3% coupon bearing bond pays interest semi-annually and has a
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what is the yield to maturity of this bond? (Answer to the nearest
tenth of a percent, e.g. 12.34%)

A 9.5% coupon bearing bond pays interest semi-annually and has a
maturity of 20 years. If the annual yield to maturity is 5.8%, what
is the current price of this bond? (Answer to the nearest
penny.)

A $1000 par value bond has a coupon rate of 7.7%, pays interest
semi-annually, matures in 22 years, and is priced at a 82.97
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 3 years to maturity, 8% coupon, 7% yield and pays
annually. Suppose yield decreases by 15 basis points, calculate the
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2.69 years
2.79 years
5.38 years
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None of the above

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970.53 963.99 959.95 None of the above

A $1,000 par value bond is currently valued at $1,055. The bond
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A bond has a coupon rate of 4.6% and pays coupons semi-annually.
The bond matures in 5 years and the yield to maturity on similar
bonds is 2%. Is this a par, premium or discount bond? What is the
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What is the coupon rate for the bond? Assume semi-annual
payments. Answer as a percent!
Bond
Coupon Rate
Yield
Price Quote
t
Apple B
?
3.7%
99.09
21

A bond has a coupon rate of 6 percent, with payments
semi-annually. It matures in 2.5 years and has a yield to maturity
of 7 percent (15 points). a. Use the “long method” to determine the
duration and modified duration of this bond? b. If the yield to
maturity increases to 9 percent, what is the approximate percent
change in price based on the modified duration calculated in ‘a?’
c. What is the actual percentage change in price if the...

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