Question
In: Finance
Bond Coupon Rate (annual payments) Maturity (years) A 0.0% 15 B 0.0% 10 C 3.9% 15...
|
Bond |
Coupon Rate (annual payments) |
Maturity (years) |
|
A |
0.0% |
15 |
|
B |
0.0% |
10 |
|
C |
3.9% |
15 |
|
D |
7.6% |
10 |
What is the percentage change in the price of each bond if its yield to maturity falls from
6.1%
to
5.1%?
The price of bond A at 6.1% YTM per $100 face value is $ (round to nearest cent)
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
jeff jeffy answered 1 year agoRelated Solutions
Consider the following bonds: Bond Coupon Rate (annual payments) Maturity (years) A 0.0% 15 B 0.0%...
Consider the following bonds:
Bond
Coupon Rate (annual payments)
Maturity (years)
A
0.0%
15
B
0.0%
10
C
4.2%
15
D
7.6%
10
What is the percentage change in the price of each bond if its
yield to maturity falls from
6.1 % to 5.1%?
like,
a.The price of bond A at 6.1 % YTM per $100 face value is $?
b.The price of bond A at 5.1% YTM per $100 face value is $?
c. The percentage change in...
Consider the following bonds: Bond Coupon Rate (Annual Payments) Maturity (years) A 0.0% 15 B 0.0%...
Consider the following bonds:
Bond
Coupon Rate (Annual Payments)
Maturity (years)
A
0.0%
15
B
0.0%
10
C
4.5%
15
D
7.6%
10
1. The price of bond C at 6.7% YTM per $100 face value is:
2.The price of bond C at 5.7% YTM per $100 face value is:
3. The percentage change in the price of Bond C is:
4.The price of bond D at 6.7% YTM per $100 face value is:
5. The price of bond D...
Consider the following bonds: Bond Coupon Rate (annual payments) Maturity (years) A 0.0% 15 B 0.0%...
Consider the following bonds:
Bond
Coupon Rate (annual payments)
Maturity (years)
A
0.0%
15
B
0.0%
10
C
4.2%
15
D
8.2%
10
What is the percentage change in the price of each bond if its
yield to maturity falls from
6.9 % to 5.9 %?
The price of bond A at 6.9% YTM per $100 face value is $?
(Round to the nearest cent.)
A bond price is $1,135.90. The maturity is 10 years. The coupon rate is 10%. Payments...
A bond price is
$1,135.90. The maturity is 10 years. The coupon rate is 10%.
Payments are semi-annual. Face value is $1,000. Solve for the YTM.
Input your answer as whole percentage with two decimal places
(x.xx), so 9.5% is input as 9.50.
Hint: first solve for
the RATE by adjusting for semiannual again, then multiply this
result by 2 to bring it back to annual. The PMT and FV have the
same sign since they are inflows to the...
A 10-Year maturity bond making annual coupon payments with a coupon rate of 5% and currently...
A 10-Year maturity bond making annual coupon payments with a
coupon rate of 5% and currently selling at a yield to maturity of
4% has a convexity of 145.4.
Compute the modified duration of the bond.
Based on the information above, compute the approximated new
price using the Duration & Convexity adjustment if the yield to
maturity increases by 75 basis points.
What is the percentage error?
Consider the following bonds: Bond Coupon Rate (annual payments) Maturity (years) A 0.00.0% 1515 B 0.00.0%...
Consider the following bonds:
Bond
Coupon Rate (annual payments)
Maturity (years)
A
0.00.0%
1515
B
0.00.0%
1010
C
4.24.2%
1515
D
7.77.7%
1010
What is the percentage change in the price of each bond if its
yield to maturity falls from
6.8 %6.8%
to
5.8 %5.8%?
The percentage change in the price of bond A is
nothing%.
(Round to one decimal place.)
A 28-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 28-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 12.14 years and convexity of
190.6. The bond currently sells at a yield to maturity of 7%.
Required:
(a)
Find the price of the bond if its yield to maturity falls to 6%
or rises to 8%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of 6%
$
Yield to maturity of 8%
$ ...
A 28-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 28-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 12.14 years and convexity of
190.6. The bond currently sells at a yield to maturity of 7%.
Required:
(a)
Find the price of the bond if its yield to maturity falls to 6%
or rises to 8%. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Yield to maturity of 6%
$
Yield to maturity of 8%
$ ...
A 30-year maturity bond making annual coupon payments with a coupon rate of 10% has duration...
A 30-year maturity bond making annual coupon payments with a
coupon rate of 10% has duration of 10.37 years and convexity of
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a. Find the price of the bond if its yield to
maturity falls to 9%. (Do not round intermediate
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b. What price would be predicted by the
duration rule? (Do not round intermediate calculations.
Round your answers to...
Consider the following bonds Bond Coupon Rate (Annual Payments) Maturity(Years) A 3% 8 B 5% 8...
Consider the following bonds
Bond
Coupon Rate (Annual Payments)
Maturity(Years)
A
3%
8
B
5%
8
C
3%
4
D
5%
4
Which of the bonds (A – D) is most sensitive to a 1% increase in
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