Bond X Bond Y N (semi-annual) 10 12 Rd (semi-annual) 3.5% 3.5% PMT (semi-annual) 35 35...

	Bond X	Bond Y
N (semi-annual)	10	12
Rd (semi-annual)	3.5%	3.5%
PMT (semi-annual)	35	35
PV	-1000	-1000
FV	1000	1000

If interests rates rise 1.25% on an annual basis, what will be the change in value of price due to duration for Bond X? and Bond Y?

Expert Solution

jeff jeffy answered 2 years ago

Three years ago you purchased a $1,000 par 12-year bond with a 3.5% semi-annual coupon at...

Three years ago you purchased a $1,000 par 12-year bond with a 3.5% semi-annual coupon at a price of $875. If the current price is $965, what was the yield to maturity of the bond when it was purchased? A. 4.89% B. 3.97% C. 3.87% D. 5.26% You purchased a $1,000 bond with a 4.6% semi-annual coupon and 15 years to maturity four years ago at a price of $855. If the yield has remained constant, what should be the...

Last year company X issued a 10-year, 12% semi-annual coupon bond at its par value of...

Last year company X issued a 10-year, 12% semi-annual coupon bond at its par value of $1000. Currently, the bond can be called in 4 years at a price of $ 1,060 and it sells for $ 1,100. What are the bond’s nominal YTM and nominal YTC ? Would the investor more likely be earning YTM or YTC ? (b) Three bonds were issues at par value of $1000 and YTM of 8 %. Evaluate the price of below: •...

n = 35 yrs PV = 50,000 PMT = 15,000 I = 8% FV in 35...

n = 35 yrs PV = 50,000 PMT = 15,000 I = 8% FV in 35 years = ? FV if I is 3% = ?

1) A 10-year coupon bond with coupon rate 12% and semi-annual payment. The required return is...

1) A 10-year coupon bond with coupon rate 12% and semi-annual payment. The required return is 10%. What is the current value of such bond? 2) Firm ABC paid an annual dividend of $2.00 per share last year. Management just announced that future dividends will increase by 2 percent annually. What is the amount of the expected dividend in year 5?

last year you purchased a 10 year semi-annual coupon bond with coupon rate of 12% and...

last year you purchased a 10 year semi-annual coupon bond with coupon rate of 12% and face value of $1000. the bonds yield to maturity was 11% then. a year past and the market interest rate increases by 1 percentage point. your one-year holding period return is____% (rounded with two decimal places)

Consider a 4-year bond with 12 percent semi-annual coupon payments and currently priced to yield 10...

Consider a 4-year bond with 12 percent semi-annual coupon payments and currently priced to yield 10 per cent per annum. Calculate duration of the bond.

Bond A: 10-year annual bond, price $1010, coupon rate 6% par $1000 bond B: 10-year semi-annual...

Bond A: 10-year annual bond, price $1010, coupon rate 6% par $1000 bond B: 10-year semi-annual bond, price $1010, coupon rate 6%, par $1000 Does bond A has a higher cost of debt than bond B?

GE has a 7-year, 4.5% coupon bond with semi-annual coupon payments. The current YTM is 3.5%....

GE has a 7-year, 4.5% coupon bond with semi-annual coupon payments. The current YTM is 3.5%. What is duration of this bond and how much will price change if YTM goes up by 1% using duration approximation method?

You purchased a bond on 12/5/2019 for $108 that makes semi-annual payments of $5. The bond...

You purchased a bond on 12/5/2019 for $108 that makes semi-annual payments of $5. The bond matures on 1/31/2029 and makes its final coupon payment on this date. Par value is 100. #16) What was the yield to maturity of this bond on the date it was purchased? #17) What was the bond's duration on the date it was purchased? #18) How much accrued interest did you pay on the bond? Use (Actual/Actual) to determine the fraction of the coupon...

Lab 12 - If y cn rd ths, y cn b a gd prgrmmr. In this...

Lab 12 - If y cn rd ths, y cn b a gd prgrmmr. In this lab, you will explore String manipulation by removing characters from Strings. Even with many characters removed, it is still possible too get the meaning. While this isn’t exactly lossy compression, it does show you that even with information removed, you can still understand what you are looking at even if the quality is not the same. Step 0: Constant Create a public static final...

Question