d. (FILL IN THE TABLE BELOW) Calculate the APPROXIMATE new price of the bond using your...

  

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d. (FILL IN THE TABLE BELOW) Calculate the APPROXIMATE new price of the bond using your measure of modified duration and the percentage change in the price of the bond for the following interest rates (Columns 2 and 3). Calculate the exact new price of the bond (above) and the exact percentage change in the price of the bond for the following interest rates (Columns 4 and 5). YTM € 0.04 0.06 0.08 0.10 0.12 0.14 0.16 %AP = -MDAL Pt+1= (1 + MDi) Pt - MDPtit+1 = c H (₁ - ( + + +√) *)] + 1²+ 0 ² FV (1+1) N PN == New Price: Pt+1 (Approx) Percentage Change in the Price % AP (Approx) New Price Pt+1 (Actual) Percentage Change in the Price %AP (Actual) SHOW YOUR CALCUATIONS FOR INTEREST RATES 0.8 AND 0.12 FOR FULL CREDIT. d. (FILL IN THE TABLE BELOW) Calculate the APPROXIMATE new price of the bond using your measure of modified duration and the percentage change in the price of the bond for the following interest rates (Columns 2 and 3). Calculate the exact new price of the bond (above) and the exact percentage change in the price of the bond for the following interest rates (Columns 4 and 5). YTM it+1 0.04 0.06 0.08 0.10 0.12 0.14 0.16 %AP= -MDAI Pt+1 = (1 + MDit) Pt - MDPelt+1 PN=CH(1-(+)+a+D ] New Price Pt+1 (Approx) Percentage Change in the Price %AP (Approx) FV i) New Price Pt+1 (Actual) Percentage Change in the Price % AP (Actual) SHOW YOUR CALCUATIONS FOR INTEREST RATES 0.8 AND 0.12 FOR FULL CREDIT. d. (FILL IN THE TABLE BELOW) Calculate the APPROXIMATE new price of the bond using your measure of modified duration and the percentage change in the price of the bond for the following interest rates (Columns 2 and 3). Calculate the exact new price of the bond (above) and the exact percentage change in the price of the bond for the following interest rates (Columns 4 and 5). YTM € 0.04 0.06 0.08 0.10 0.12 0.14 0.16 %AP = -MDAL Pt+1= (1 + MDi) Pt - MDPtit+1 = c H (₁ - ( + + +√) *)] + 1²+ 0 ² FV (1+1) N PN == New Price: Pt+1 (Approx) Percentage Change in the Price % AP (Approx) New Price Pt+1 (Actual) Percentage Change in the Price %AP (Actual) SHOW YOUR CALCUATIONS FOR INTEREST RATES 0.8 AND 0.12 FOR FULL CREDIT. d. (FILL IN THE TABLE BELOW) Calculate the APPROXIMATE new price of the bond using your measure of modified duration and the percentage change in the price of the bond for the following interest rates (Columns 2 and 3). Calculate the exact new price of the bond (above) and the exact percentage change in the price of the bond for the following interest rates (Columns 4 and 5). YTM it+1 0.04 0.06 0.08 0.10 0.12 0.14 0.16 %AP= -MDAI Pt+1 = (1 + MDit) Pt - MDPelt+1 PN=CH(1-(+)+a+D ] New Price Pt+1 (Approx) Percentage Change in the Price %AP (Approx) FV i) New Price Pt+1 (Actual) Percentage Change in the Price % AP (Actual) SHOW YOUR CALCUATIONS FOR INTEREST RATES 0.8 AND 0.12 FOR FULL CREDIT.

Answer rating: 100% (QA)

Here are the calculations for interest rates of 008 and 012 Int... View the full answer