A 1 5 - year maturity, $ 1 0 0 par value bond with an 8 .

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Question:

15 -

year maturity, $

100

par value bond with an

8.0 %

coupon pays interest semi

-

annually and is trading to a price of

81.32 %,

with a yield of

10.50 %

and a modified duration of

7.90 .

What would be the approximate percentage change in price for an instantaneous increase in yield of

0.25 %,

and what would be the expected resulting price?

Related Book For answer-question

College Algebra

ISBN: 978-0134697024

12th edition

Authors: Margaret L. Lial, John Hornsby, David I. Schneider, Callie Daniels

See More Books

Posted Date: Apr 01, 2024 01:50 AM

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A 1 5 - year maturity, $ 1 0 0 par value bond with an 8 .

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Expert Answer:

Absolutely given the information about the bond we can calculate the approximate percentage change i... View the full answer

College Algebra

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