Question

In: Finance

A government bond currently carries a YTM of 9% and a market price of $101.79. If...

  1. A government bond currently carries a YTM of 9% and a market price of $101.79. If the bond pays semi-annual coupon of 10% for 2 years,
  1. What is its duration?
  2. What would be new price if the interest rates decrease from 9% to 8%?

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A government bond currently carries a yield to maturity of 8 percent and market price of...
A government bond currently carries a yield to maturity of 8 percent and market price of $1,080. If the bond promises to pay $100 in interest annually for five years, what is its current duration?
There is a 9%, 23 year note bond which has a ytm of 9%. The ytm...
There is a 9%, 23 year note bond which has a ytm of 9%. The ytm alters by one percent down. By how much does the price alter? If the ytm drops by 2%, by how much does the price change? What is the exact percentage change of the bond in the 2 cases? Please show all work and the formula(s) used.
There is a 9%, 23 year note bond which has a ytm of 9%. The ytm...
There is a 9%, 23 year note bond which has a ytm of 9%. The ytm alters by one percent down. By how much does the price alter? If the ytm drops by 2%, by how much does the price change? What is the exact percentage change of the bond in the 2 cases?
Currently working on a chart for maturity, YTM, Quoted price, book market value, and market value...
Currently working on a chart for maturity, YTM, Quoted price, book market value, and market value weight where would i find that information or how would i calculate it? Currently doing it for Zoeitis
There is a 10%, 13 year note bond which has a ytm of 9%. The ytm...
There is a 10%, 13 year note bond which has a ytm of 9%. The ytm alters by half a percent down. By how much does the price alter? If the ytm drops by 3%, by how much does the price change? What is the exact percentage change of the bond in the 2 cases? Please show formula and show all work.
The market price is ​$1,050 for a 9​-year bond ​($1,000 par​value) that pays 9 percent...
The market price is $1,050 for a 9-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity?
Given a 9-year bond with YTM of 4% and a duration of 7.5, what is the...
Given a 9-year bond with YTM of 4% and a duration of 7.5, what is the expected percent price change/return for a 0.05% (5 basis-point/bps) shift up in market yields? Given 1-year ZCB securities with 5.2% yield in GBP and 4.5% yield in EUR, and a spot exchange rate of GBP/EUR at 1.5408, what expected spot ex- change rate in 1-year would result in a break-even between the two instruments? Which bond would be a better investment given a 1Y...
How to choose between a premium bond and a discount bond with the same YTM ＝market...
How to choose between a premium bond and a discount bond with the same YTM ＝market rate
1. Relationship between YTM and price (a) Calculate the price of each bond and fill up...
1. Relationship between YTM and price (a) Calculate the price of each bond and fill up the blank cells in the following table (3 points) – Maturity PMT Face value YTM Price 10 100 1000 20% 10 100 1000 18% 10 100 1000 16% 10 100 1000 14% 10 100 1000 12% 10 100 1000 10% 10 100 1000 8% 10 100 1000 6% 10 100 1000 4% (b) Based on above table, draw a graph with horizontal axis showing...
What is the price of a $100, 12 year, 6%, semiannual bond with a YTM of...
What is the price of a $100, 12 year, 6%, semiannual bond with a YTM of 6.5%? $104.23 $95.88 $95.92 $100.00
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT