Question: A 3 year zero coupon bond with a face value of $100 ,yield to maturity of 7%, calculate the value of one basis point change

A 3 year zero coupon bond with a face value of $100 ,yield to maturity of 7%, calculate the value of one basis point change DV01?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Suppose that a one- year zero- coupon bond with a face value of $ 100 currently sells at $ 94.34, while a two- year zero sells at $ 84.99. You are considering the purchase of a two- year- maturity...

Q:

A. Determine the future periodic spot interest rates, at one period from now, on a one-step Ho-Lee model, using current periodic spot interest rate of A1 percent,current spot rate over two periods of...

Q:

Questions 1-8 are based on the following information A liability of $10 million is due in 10 year's time. The yield curve is currently flat at 6.9% per annum. The following 5 portfolios are available...

Q:

1) A one year zero coupon bond (ZCB) with face value $100 is priced as $99. A two year ZCB with face value $100 is priced as $98.A third bond matures in two years, its face value is $1000, It pays...

Q:

A 1 0 year annual coupon bond has a face value of $ 1 0 0 and an annual coupon of $ 3 . Assume that the yield to maturity of the bond is 5 % and that the yield curve is flat. 2 ( a ) Calculate the...

Q:

A 1 0 year annual coupon bond has a face value of $ 1 0 0 and an annual coupon of $ 3 . Assume that the yield to maturity of the bond is 5 % and that the yield curve is flat. 2 ( a ) Calculate the...

Q:

Questions 1-8 refer to the following information A liability of $40 million is due in 14 year's time. The yield curve is currently flat at 6% per annum. The following 5 portfolios are available to...

Q:

can you please solve 2 part a,b,c & d Consider the following bonds: a) 3-year zero coupon bond with a face value of 100 (Bond A), b) a semi-annual 6% coupon bond with a face value of 100 and a...

Q:

hi there! i was wondering if some one could help me with 3.4 and 3.5? thnk you so much! (i) A one year zero coupon bond, with a par value of 100 (ii) A five year UK gilt, with a coupon rate of 6% and...

Q:

Question Three Answer all parts Show all your workings (a) Show the amortisation schedule (under the headings balance, payment interest, and principal) for a 5.0% four year annual pay 300.0 million...

Q:

Calculate the 2nd moment of inertia for a beam with a length of 200 mm, a width of 20 mm and a height of 3 mm. For the same beam, and using the provided equations, calculate the maximum deflection if...

Q:

Why is the choice of the inventory cost formula important for tax purposes? Explain.

Q:

14. From the following list, identify the accounts that will appear on the postclosing trial balance. ACCOUNTS 1. Cash 2. Accounts Receivable 3. Supplies 4. Equipment 5. Accumulated Depreciation 6....

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".