Question: A 9 - year bond paying coupons annually has a yield of 1 3 . 5 % and a duration of 8 . 6 3

A 9-year bond paying coupons annually has a yield of 13.5% and a duration of 8.63 years (Macaulay). Assume the market yield changes by 60 basis points.
Required:
What is the percentage change in the bonds price?

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:

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:

A 9 - year bond paying coupons annually has a yield of 8 % and a duration of 7 . 7 0 6 years ( Macaulay ) . Assume the market yield changes by 5 5 basis points. Required: What is the percentage...

Q:

inv.que 4 inve. 4 Homework5 Hutabadboard.com Help Save Subm 4 Check my w Required: A six-year bond paying coupons annually has a yield of 7% and a duration of 7.202 years of the bond's yield changes...

Q:

A 9 - year bond paying coupons annually has a yield of 9 . 5 % and a duration of 8 . 8 3 6 years ( Macaulay ) . Assume the market yield changes by 5 0 basis points. Required: What is the percentage...

Q:

A 9 - year bond paying coupons annually has a yield of 8 . 5 % and a duration of 8 . 4 8 9 years ( Macaulay ) . Assume the market yield changes by 9 0 basis points. Required: What is the percentage...

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:

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:

A 9 - year bond paying coupons annually has a yield of 1 3 . 5 % and a duration of 8 . 6 3 years ( Macaulay ) . Assume the market yield changes by 6 0 basis points. Required: What is the percentage...

Q:

The direct labour budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labour-hours: 1st 2nd 3rd Quarter Quarter Quarter 4th Quarter...

Q:

Discussion Assignment Preparation Assignment: Locate and Schedule an Interview In preparation for your RA 2 assignment in Module 7, you will identify a local health care administrator and schedule an...

Q:

How are perquisites generally characterized? Answers Tangible payments provided to a broad group of employees Payments for the achievement of a specific goal or objective Remuneration approach that...

Q:

2023 1040 form 1.Phillip and Claire are married and file a joint return. Phillip is self-employed as a real estate agent, and Claire is a flight attendant. Phillip and Claire have three dependent...