A 9-year bond has a yield of 10% and a duration of 7.194 years. If the market

Question:

A 9-year bond has a yield of 10% and a duration of 7.194 years. If the market yield changes by 50 basis points, what is the percentage change in the bond’s price?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

See More Books

Question Posted: Jan 04, 2013 07:56 AM

See More Questions

What is the percentage change in the price of each bond if its yield to maturity falls from 6% to 5%?
A 10-year zero-coupon bond has a yield of 6 percent. Through a series of unfortunate circumstances, expected inflation rises from 2 percent to 3 percent. a. Assuming the nominal yield rises in an...
What is the percentage change in the viscosity of water when the water temperature rises from 60 to 120F?
Sumit's age after 12 years will be 6 times his age 8 years back. What is the present age of Sumit? (a) 10 (b) 12 (c) 14 (d) 15 (e) 18
Find all roots, real or nonreal. Give exact answers. a. 2x2 - 6x + 3 = 0 b. 13x - 2x2 = 6 c. 3x2 + 4x + 4 = 0
The file named Countryregion.xlsx contains the following data for several underdeveloped countries/regions: Infant mortality rate Adult literacy rate Percentage of students finishing primary school...
You jump into the air from a level floor. Which of the following are exerting a force on you: (a) the floor, (b) the Earth, (c) the air, (d) your feet?
At Reyes Company, checks are not prenumbered because both the purchasing agent and the treasurer are authorized to issue checks. Each signer has access to unissued checks kept in an unlocked file...
The _ _ _ _ function enables you to retrieve separate characters in a string. A . at ( ) B . char _ at ( ) C . indexof ( ) D . value _ of ( )
Stewart Manufacturing buys on terms of 2/10, net 30, but it has not been paying on timeit is a slower payer and its suppliers are getting upset. Stewart does not take discounts, and it has been...
How can a perpetuity, which has an infinite maturity, have a duration as short as 10 or 20 years?
Find the duration of a 6% coupon bond making annual coupon payments if it has 3 years until maturity and has a yield to maturity of 6%. What is the duration if the yield to maturity is 10%?
Factor the expression completely. 25x - 30x + 9
What do you understand by mechanical and thermal efficiency? A steam plant uses 3 tonne of $\mathrm{coal} / \mathrm{h}$. The steam is fed to turbine the output of which is $4 \mathrm{MW}$. The...
Design a program that allows two players to play a game of tic-tac-toe. Use a two-dimensional String array with three rows and three columns as the game board. Each element of the array should be...
An electron traveling horizontally east passes between two horizontal, oppositely charged plates and is deflected downward. Passing through the same space between the plates, in which direction (if...
The surface charge density on a nonconducting disk of radius $R$ varies with the radius as $\sigma(r)=c r$, where $c$ is a positive constant $(c>0)$. Derive an expression for the...
A box full of charged plastic balls sits on a table. The electric force exerted on a ball near one upper corner of the box has components $1.2 \times 10^{-3} \mathrm{~N}$ directed north, \(5.7...
In Problem discuss the validity of each statement. If the statement is always true, explain why. If not, give a counterexample. The sample variance of a set of measurements is always less than the...
Give the products of the following reaction, where T is tritium: dioldehydrase Ad- CH CH3C-COH CoIII) coenzyme B12
Describe factors that promote technological proliferation.
Classify each of the following strategies as directional or nondirectional. a. The fund buys shares in the India Investment Fund, a closedend fund that is selling at a discount to net asset value,...
If the current exchange rate is $1.35/, the one-year forward exchange rate is $1.45/, and the interest rate on British government bills is 3% per year, what risk-free dollar-denominated return can be...
What would be the dollar value and rate of return on the market neutral position if the value of the residual turns out to be 4%? If the market return in that month is 5%, where would the plot of the...
How do laws originate? Explain the differences between various sources of law and describe the branches of government and their roles in creating, administering, and enforcing the law. In addition,...
Monte is a resident taxpayer. During the 2023 income year, Monte recorded the following: Salary received from part-time employment (no PAYG) 22,000 Bonus due but not yet received from part-time...
ACC 550 Cost Accounting Module 4-1 Discussion Another Take on Flexible Budgets and Variance Analysis Comprehensive Variance Analysis Based on Ex Post Optimal Budget. The author presents a new...

A 9-year bond has a yield of 10% and a duration of 7.194 years. If the market

Question:

Step by Step Answer:

The percentage change ...View the full answer

Investments

Students also viewed these Accounting questions