Question
In: Finance
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 5%, and...
A bond with a $1,000 par, 4 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 4.9%?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
(Bonds) A bond with a $1,000 par, 4 years to maturity, a coupon rate of 5%,...
(Bonds) A bond with a $1,000 par, 4 years to maturity, a coupon
rate of 5%, and annual payments has a yield to maturity of 4.2%.
What will be the percentage change in the bond price if the yield
changes instantaneously to 4.6%? (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, 4 years to maturity, a coupon rate of 3%, and...
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 3%,
and annual payments has a yield to maturity of 3.3%. What will be
the percentage change in the bond price if the yield changes
instantaneously to 4.7%?
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 3%, and...
A bond with a $1,000 par, 4 years to maturity, a coupon rate of 3%,
and annual payments has a yield to maturity of 3.3%. What will be
the percentage change in the bond price if the yield changes
instantaneously to 4.7%?
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 3.6%. What will
be the actual percentage change in the bond price if the yield
changes instantaneously to 4.3%? Round to the nearest 0.001%, drop
the % symbol (e.g., if your answer is, e.g., 1.1234%, enter it as
1.123.)
A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually....
A $1,000 par-value bond with 5 years of maturity pays a 5%
coupon rate, paid annually. What is the value of the bond if your
required rate of return is 5%?
2. A $1,000 par-value bond with 5 years of
maturity pays a 5% coupon rate, paid semi-annually. What is the
value of the bond if your required rate of return is 5%?
3. A $1,000 par-value bond with 5
years of maturity pays a 5% coupon rate, paid semi-annually. What...
1. A $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid...
1. A $1,000 par-value bond with 5 years of maturity pays a 5%
coupon rate, paid annually. What is the value of the bond if your
required rate of return is 5%?
2. A $1,000 par-value bond with 5 years of maturity pays a 5%
coupon rate, paid semi-annually. What is the value of the bond if
your required rate of return is 5%?
3. A $1,000 par-value bond with 5 years of maturity pays a 5%
coupon rate, paid...
1. $1,000 par-value bond with 5 years of maturity pays a 5% coupon rate, paid annually....
1. $1,000 par-value bond with 5 years of maturity pays a 5%
coupon rate, paid annually. What is the value of the bond if your
required rate of return is 12%?
2. A $1,000 par-value bond with 5 years of maturity pays 5%
coupon rate, paid semi-annually. What is the value of the bond if
your required rate of return is 12%?
3. AAA, Inc. currently has an issue of bonds outstanding that
will mature in 31 years. The bonds...
(Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon rate of 6%,...
(Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon
rate of 6%, and annual payments has a yield to maturity of 3.8%.
What will be the percentage change in the bond price if the yield
changes instantaneously to 5.3%? (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 13 years to maturity and a coupon rate of 4% has a par,...
A bond with 13 years to maturity and a coupon rate of 4% has a
par, or face, value of $18,000. Interest is paid annually. If you
require a return of 10% on this bond, what is the value of this
bond to you? (in absolute value)
Bond 2 Coupon rate 6.8% Annual coupon frequency 2 Par $1,000 Time to maturity (years) 5...
Bond 2
Coupon rate
6.8%
Annual coupon frequency
2
Par
$1,000
Time to maturity (years)
5
c) the realized compound yield for
Bond 2 if the current price is $1000 and the
semi-annual coupons are reinvested at an annual rate of 2% until
the bond matures.
d) the realized compound yield for
Bond 2 if the current price is $1000 and the
semi-annual coupons are reinvested at an annual rate of 2% until
the bond is sold in 3 years...
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