Question: A 9 - year bond paying coupons annually has a yield of 1 0 . 5 % and a duration of 7 . 3 5

A 9-year bond paying coupons annually has a yield of 10.5% and a duration of 7.356 years. Assume the market yield changes by 40
basis points.
Required:
What is the percentage change in the bond's price?
Note: Assume modified duration and a positive increase in yield change. Do not round intermediate calculations. Negative value
should be indicated by a minus sign. Round your answer to 2 decimal places.
A 9-year bond paying coupons annually has a yield of 10.5%

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:

a nine year bond paying coupons annually has a yield of 10% and a duration of 7.179 years. If the bond yield changes by 75 basis points what is the percentage change in the bond price? change in bond...

Q:

A seven-year bond paying coupons annually has a yield of 8% and a duration of 7.212 years. If the bond's yield changes by 40 basis points, what is the percentage change in the bond's price? (Input...

Q:

3. A 9-year bond paying coupons annually 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? 4. a....

Q:

Find the duration of a bond with settlement date June 6, 2018, and maturity date December 5, 2027. The coupon rate of the bond is 9%, and the bond pays coupons semiannually. The bond is selling at a...

Q:

please show your work ONLY ANSWER #3 and #4 1. Prices of long-term bonds are more volatile than prices of short-term bonds. However, yields to maturity of short-term bonds fluctuate more than yields...

Q:

Answer the following two questions: 1. A 9-year bond paying coupons annually 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...

Q:

A 9 - year bond paying coupons annually has a yield of 7 . 5 % and a duration of 7 . 2 9 5 years. Assume the market yield changes by 1 0 0 basis points. Required: What is the percentage change in the...

Q:

A 9-year bond paying coupons annually has a yield of 7% and a duration of 8.594 years (Macaulay). Assume the market yield changes by 45 basis points. Required: What is the percentage change in the...

Q:

A 9-year bond paying coupons annually has a yield of 11.5% and a duration of 8.82 years. Assume the market yield changes by 30 basis points. Required: What is the percentage change in the bonds...

Q:

Suppose you have a horizon date of 10 years and bought art 8-year, 8% coupon bond at par (F = $100) that pays coupons annually and is callable at a call price of $110. Assume the yield curve is flat...

Q:

What are bar codes and how are they used in labor costing?

Q:

What is the pH of a saturated solution of Mg(OH)2? Use data from Table 13.2.

Q:

If a bond offers an investor 1 1 % in nominal return during a year in which the rate of inflation is 4 % , then the investor's real return is: 6 . 7 3 x 7 3 1 K 1 5 % 1 0 5 6 %

Q:

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Q:

Although benefits account for a large share of employee compensation, many feel there is little evidence on whether an employer receives an adequate return on the benefits investment. One suggestion...

Q:

Your company, like many others, is experiencing doubledigit percentage increases in health care costs. What suggestions can you offer that may reduce the rate of cost increases?

Q:

Three popular interventions for enhancing worker satisfaction are job enrichment, job rotation, and role analysis. What are the critical differences between these interventions, and under what...