Question: From a bond it is known that the worst expected loss in 1 day at 95% would be 3.5 basis points and in price it

From a bond it is known that the worst expected loss in 1 day at 95% would be 3.5 basis points and in price it would be $ 4. What is the price of the bond if the modified duration is 8.9 years?

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 Accounting Questions!

From a bond it is known that the worst expected loss in 1 day at 95% would be 3.5 basis points and in price it would be $ 4. What is the price of the bond if the modified duration is 8.9 years?

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

Please provide excel spreadsheet detailing how you got to the multiple choice answer. I am trying to get ahead and understand each of the practiceproblems in prep for a exam so it would be very...

The table below shows the 16 worst days of returns for the Alfa mutual fund over a 100-day period, ranked from worst (day 100) to least bad (day 85): Day Return 85 -1,5% 86 -1,5% 87 -1,6% 88 -1,6% 89...

i need help with this assignment that i have attached Accounting 1210 Quiz Three - Chapter 10 and 15 1. A determinable liability is one which a. has uncertainty with the timing of the due date b. has...

I need an expert who understands International Finance at MBA and PHD level to return work in 1hr and 30 minutes max. If you cannot work on this problem dontaccept and dontask for more price as price...

For the exclusive use of X. Ye, 2017. ARVIND KRISHNAMURTHY AND TAFT FOSTER KEL782 Quantitative Easing in the Great Recession On October 29, 2008, the Federal Open Market Committee (FOMC) concluded...

B G H Solution 2 Chapter: 3 Problem: MNOP 7/16/2015 24 6 A 20 year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of 7 $1,040. The bond sells for...

Financial Modelling. Please answer all questions. thanks QUESTION 1 [10 marks] Gladys buys a 270-day bank bill with a face value of $100000 at a yield of 6.1% pa. (simple interest). After 66 days she...

Hi I just need you to help me to do a introduction about the paper you can read the whole paper simply and make a professional intro which has to be matched with the requirement. Introduction You are...

The steel plate shown will support six 50-mm-diameter idler rollers mounted on the plate as shown. Two flat belts pass around the rollers, and rollers A and D will be adjusted so that the tension in...

In the figure below, what is the length of arc AB? A . 9 . 60 . 3 cm D. CO

EACH MONTH, THE SUNS PAY $ 1 2 , 0 0 0 IN RENT TO THE CITY OF PHOENIX PER THEIR NEW ARENA AGREEMENT. WHAT COST IS THIS?

Responsibilities with corresponding authority and accountability can be defined for each of the six functions. Match up the correct activity with the corresponding function. - Acquisition and...

A Is it really possible for Sus doctor to pay attention to all of the cultural factors that play into her health care simultaneously? Is it enough for him to consider her financial constraints but...

A Take a moment to Google yourself. Search not only for your name but also your e-mail address. What comes up?

2 What about students who attended the school but did not graduate or who are not in the alumni rolls? Would leaving them out skew the results of your survey as well?