Question

Bond Dave has a 3 percent coupon rate, makes semiannual payments, a 8 percent YTM, and 19 years to maturity. If interest rates suddenly rise by 1 percent, what is the percentage change in the price of Bond Dave?

Answer #1

Bond Dave has a 3 percent coupon rate, makes semiannual
payments, a 3 percent YTM, and 8 years to maturity. If interest
rates suddenly rise by 5 percent, what is the percentage change in
the price of Bond Dave? Enter the answer with 4 decimals (e.g.
0.0123).

Bond Dave has a 6 percent coupon rate, makes semiannual
payments, a 8 percent YTM, and 8 years to maturity. If interest
rates suddenly rise by 1 percent, what is the percentage change in
the price of Bond Dave? Enter the answer with 4 decimals (e.g.
0.0123).

Bond Dave has a 6 percent coupon rate, makes semiannual
payments, a 5 percent YTM, and 12 years to maturity. If interest
rates suddenly rise by 2 percent, what is the percentage change in
the price of Bond Dave? Enter the answer with 4 decimals (e.g.
0.0123).

Bond Dave has a 7 percent coupon rate, makes semiannual
payments, a 9 percent YTM, and 5 years to maturity. If interest
rates suddenly rise by 2 percent, what is the percentage change in
the price of Bond Dave? Enter the answer with 4 decimals (e.g.
0.0123).

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 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 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 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 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...

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