Question: Given the information below for a 6.2% 18- year bond, compute the price value of a basis point Price=114.1338 Yield=5% Price if yield is 5.01%=114.0051

Given the information below for a 6.2% 18- year bond, compute the price value of a basis point

  • Price=114.1338
  • Yield=5%
  • Price if yield is 5.01%=114.0051

If the duration of the 6.2% 18-year bond is 11.28, what is the estimated price change for a 1 basis point change in yield.

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:

The effects of a tariff on imported kumquats can be divided into the following categories: tariff revenues received by the treasury ($8 million); increased use of resources to produce more kumquats...

Q:

a. Given the information below for a 6.2% 18- year bond, compute the price value of a basis point Price=114.1338 Yield=5% Price if yield is 5.01%=114.0051 b. If the duration of the 6.2% 18-year bond...

Q:

HW71 , (A)Compute the value of a 5-year 7.45 coupon bond that pays interest annually assuming that the appropriate discount rate is 5.6%. , (B)Determine whether the yield to maturity of a 6.5%...

Q:

HW73 , (A)Given the information below for a 6.2% 18- year bond, compute the price value of a basis point Price=114.1338 Yield=5% Price if yield is 5.01%=114.0051 , (B)If the duration of the 6.2%...

Q:

(A)Given the information below for a 6.2% 18- year bond, compute the price value of a basis point Price=114.1338 Yield=5% Price if yield is 5.01%=114.0051 (B)If the duration of the 6.2% 18-year bond...

Q:

. HW7??3 , (A)Given the information below for a 6.2% 18- year bond, compute the price value of a basis point Price=114.1338 Yield=5% Price if yield is 5.01%=114.0051 , (B)If the duration of the 6.2...

Q:

Fill out the blue cells. Use/show formulas/link everywhere applicable. B E F G H I Example 1a on Ch.4 handout A D 1 Inputs Output 2 Settlement 9/30/2020 Yield to maturity 3 Maturity 9/30/2030 Yield...

Q:

16. a. Given the information below for a 6.2% 18-year bond compute the price value of a basis point: price = 114.1338 yield = 5% price if yield is 5.01% = 114.0051 b. If the duration of the 6.2%...

Q:

Patrick Wall is a new associate at a large international financial institution. Wall has recently completed graduate school with a Master's degree in finance, and is also currently a CFA Level I...

Q:

Mr. Johnson asks Mr. Wall to compute the value of the call option. Using the given information, what is the value of the embedded call option? a. $0.00 b. $1.21 c. $2.04 Patrick Wall is a new...

Q:

Cash Flows From Working It may surprise you that there are cash flows associated with holding a job. Using the examples provided in Chapter 6, construct a simple cash flow statement and payback...

Q:

.Gloria has 800,000 shares of $1 par value common stock outstanding. The following transactions occurred during the year: a. During April, Gloria declared a 5% stock dividend when the market price of...

Q:

How does a targeted rsum differ from a general rsum? Which do you believe would be most effective and why?

Q:

On January 1 , 2 0 2 1 , Huge Inc. acquired \ ( 3 0 \ % \ ) of Small Corp. Huge used the equity method to account for the investment. On January 1 , 2 0 2 2 , Huge sold two - thirds of its investment...

Q:

Refer to the transportation problem described in Problem 16. Use the procedure described in Section 8.7 to try to find an alternative optimal solution. In Problem 16 Des Moines 25 14 Jefferson 30...

Q:

Tower Company owned a service truck that was purchases at the beginning of 2018 for $31,000. It had an estimated life of three years and an estimated salvage value of $4,000. Tower company uses...

Q:

Bay Oil produces two types of fuels (regular and super) by mixing three ingredients. The major distinguishing feature of the two products is the octane level required. Regular fuel must have a...

Q:

The Silver Star Bicycle Company will be manufacturing both mens and womens models for its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule...

Q:

Pension data for Sterling Properties include the following: Service cost, 2011 ............... $112 Projected benefit obligation, January 1, 2011 .... 850 Plan assets (fair value), January 1, 2011...

Q:

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Q:

As social media continues to influence health care and promotion across populations, how may nurse leaders be proactive in shaping this landscape?

Q:

Have antidiscrimination laws helped or hurt the fair treatment of workers? ko5

Q:

Have you ever practiced raising an ethical issue to a professor or to your manager? What did you do? What were the results? 47