Question: A bond with an 8 -year duration is worth $1,065, and its yield to maturity is 5.26%. If the yield to maturity falls to 5.044

A bond with an 8 -year duration is worth $1,065, and its yield to maturity is 5.26%. If the yield to maturity falls to 5.044 you would predict th bond will be approximately (Answer rounded to two decimals)

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!

Find J and K in the rotational system shown in Figure P4.21 to yield a 30% overshoot and a settling time of 3 seconds for a step input in torque. T) K FIGURE P4.21

A bond with a 8 year duration is worth $1077 and its yield to maturity is 77% If the yield to maturity falls to 757 you would predict that the new value of the bond will be approximately Multiple...

A bond with a 9 -year duration is worth $108.00 and its yield to maturity is 8%. If the yield to maturity falls to 7.84% you would predict that the new value of the bond will be 5 1,094.4

Problem 1 (10 marks) Three years ago, you purchased a bond for $974.69. The bond had three years to maturity, a coupon rate of 8% paid annually, and a face value of $1,000. Each year you reinvested...

What is this Table intended to depict? Step by step derive the formula for duration and convexity . What is the difference between effective duration, modified duration, and duration? 518 PART IV...

137 years Obligation of $2,658.44 to be paid out in 1 Problem 3 2 Yield to maturity in your 3 4 5 Coupon rate 6 Maturity 7 Face value Bond 1 12.02 Bond 2 13.6% 11 1,000 Bond 3 15.5% 25 1.000 1,000 9...

The assignment is located in the attachment!!!!!! Due date: End of the class period on April 27, 20162. Any project that is submitted after the due date will not be accepted and a zero (0) will...

1. What is the yield to maturity for a $1,000 face value 8% semi-annual corporate coupon bond that has 15 years until maturity and sells for $1,007? (round your answer to three places after the...

Please show work in excel with appropriate formulas (Please do not just copy/paste in cells) Thank you Page 1 of 5 Date: 11/7/16 Course: Managerial Finance Week3 Problem Set 1. Your bank is offering...

Please the midterm information as follows: PPT Presentation: S1 -- Cover Page (your name, date, course name and number) S2 Introduction Search a type of your investment(s) and explain briefly for the...

Kindly help solve problems 4-8 and 5-7 and please see attached documents below for the questions and problems templates PROBLEM 4-1 Given As a summer intern you are asked to prepare a spreadsheet...

Mr Ahmed Kumar runs a snack distribution business located in the Light Industrial area in Lusaka. The following list of balances was extracted from his ledger as at 31 March, 2020; the end of his...

f) Convert the double summation LLV into a nested for loop using C++ syntax. i-1 j-1

8 Why do price promotions exacerbate the bullwhip effect? What countermeasures can improve the situation?

A block with mass m is attached to an ideal spring that has force constant k. (a) The block moves from x, to x" where x, > x,. How much work does the spring force do during this disparagement? (b)...

A 2.50-kg mass is pushed against a horizontal spring of force constant 25.0 N/cm on a frictionless air table. The spring is attached to the tabletop, and the mass is not attached to the spring in any...

A block weighing 75.0 N rests on a plane inclined at 25.0 to the horizontal. A force F is applied to the object at 40.0 to the horizontal, pushing it upward on the plane. The coefficients of static...

A 1200 kg airplane is flying in a straight line at 80 m/s, 1.3 km above the ground. What is the magnitude of its angular momentum with respect to a point on the ground directly under the path of the...

The random variable X, representing the number of cherries in a cherry puff, has the following probability distribution:(a) Find the mean p. and the variance ?2 of X.(b) Find the mean px, and the...

During a training session, breaks should be given approximately every: 3 0 minutes 6 0 minutes 2 hours 4 hours

How do you use personal connectivity when dealing with upset customers?

When helping customers at counters, how do you pace the entire line that is forming in front of you?

How often and under what circumstances do your customers go ballistic?