Question
In: Finance
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%?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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 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%?
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.)
(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.)
(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)
"Consider the following bond: Coupon rate = 11% Maturity = 18 years Par value = $1,000...
"Consider the following bond: Coupon rate = 11% Maturity = 18
years Par value = $1,000 First par call in 13 years Only put date
in five years and putable at par value Suppose that the market
price for this bond is $1,169.
Show that the yield to maturity for this bond is 9.077%.
Show that the yield to first par call is 8.793%.
Show that the yield to put is 6.942%.
Suppose that the call schedule for this bond...
Bond A Bond B Maturity (years) 20 30 Coupon rate (%) 12 8 Par value $1,000...
Bond A
Bond B
Maturity (years)
20
30
Coupon rate (%)
12
8
Par value
$1,000
$1,000
If both bonds had a required rate of return of 10%, what
would the bonds’ prices be?
Explain what it means when a bond is selling at a
discount, a premium, or at its face amount (par value). Based on
results in part (a), would you consider both bonds to be selling at
a discount, premium, or at par?
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...
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