Question
In: Finance
(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.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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, 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.)
(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 $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...
3. A $1,000 par bond has a 5% semi-annual coupon and 12 years to maturity. Bonds...
3. A $1,000 par bond has a 5% semi-annual coupon and 12 years to
maturity. Bonds of similar risk are currently yielding 6.5%. a.
What should be the current price of the bond? b. If the bond’s
price five years from now is $1,105, what would be the yield to
maturity for the bond at that time? c. What will the price of this
bond be 1 year prior to maturity if its yield to maturity is the
same as...
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...
Consider the following two bonds. Bond A: 10-year maturity, 4% coupon rate, $1,000 par value Bond...
Consider the following two bonds.
Bond A: 10-year maturity, 4% coupon rate, $1,000 par value
Bond B: 5-year maturity, 4% coupon rate, $1,000 par value
Assuming that the YTM changes from 6% to 7%, calculate % change
in each bond’s price.
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