If the duration of a bond being discounted a 6.6% is 3.3 years. Interest rates on comparable

Fantastic news! We've Found the answer you've been seeking!

Question:

If the duration of a bond being discounted a 6.6% is 3.3 years. Interest rates on comparable debt decrease by 1.5%.

What percentage will the price rise (+) or fall (-)?

Related Book For answer-question

Personal Finance

ISBN: 978-1133595830

12th edition

Authors: Thomas Garman, Raymond Forgue

See More Books

Posted Date: Jun 10, 2023 11:10 PM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Identify the people, organization, and technology factors responsible for impeding adoption of internal corporate social networks of the company "NIKE"?
Jake, a single taxpayer, has $100,000 of ordinary income, a $10,000 net short-term capital loss, and $7,000 of qualified dividends. What is the result?
A particle that moves along a straight line has velocity v(t) = t2 et meters per second after seconds. How far will it travel during the first seconds?
An incompressible fluid flows past an impermeable flat plate, as in Fig. P3.16, with a uniform inlet profile u = Uo and a cubic polynomial exit profile u ≈ Uo (3n n3 / 2) where n = y/∂...
Lynch Brothers manufactures conveyor belts. Early in January 2011, Lynch Brothers constructed its own building at a materials, labor, and overhead cost of $900,000. Lynch Brothers also paid for...
Why do better decision regarding the purchasing and managing of goods for sale frequently cause dramatic percentage increases in net income?
8. Some flow sensors have an input range of 100 cm/min. At a flow rate of 0 cm/min, the output power of 0 V is indicated and gradually increased to 4.2 V at a flow rate of 50 cm/min and 10 V at 100...
Problem 9 (50 Points) An air-cooled aluminum heat sink is used to keep electronics cool (see image and diagram). The cooling requirements are being significantly increased. To increase the rate of...
a. identify the policy and/or procedure regarding stock control and inventories procedure: b. explain in two (2) sentences how these policies and/or procedures are implemented c. explain in two (2)...
The Chimera is 10 km [E 30o S] of Barrie, Ontario. It stalks around Simcoe County doing 100 km of exercise and finally ends up at 20 km [E 45o N] of Barrie. Determine its displacement and compare its...
A constant force of 20 N is applied to an object of mass 8.0 kg at an angle of 25 with the horizontal. What is the work done by this force on the object if it causes a displacement of 2.0 m along the...
1. Describe the components of a self-contained cartridge. 2. Explain the behavior of a projectile using ballistics principles and terminology. 3. Explain the development of the modern self-contained...
Each culture today appears to be using more of the world's energy per capita as development takes place. With reference to menin the Bahamas , suggest how culture is resulting in placing increasing...
Reflect back on the Accounting Theory course as a whole What are the top three things that you have learned from this course, or the top three things you've "gotten out of" this course? In other...
It is widely recognized that with large projects, comes the complexity of managing data and then deciding how and to what extent to communicate to stakeholders. As a project manager of the Oslo...
Explain five different cases of income exempt from tax with clear examples.
Julia graduated six years ago in aeronautical engineering and changed job once. Her income is more than sufficient for her needs. Julia contributes the maximum into her employers retirement account...
1. What are the four ways financial planners may be compensated? 2. Describe two professional certification programs for financial planners.
(a) Review the familys budget and make suggestions about how to modify various budget estimates so that they could save $200 per month for the education fund. (b) Briefly describe the effect of your...
If X is a binomial random variable with n trials and success probability p, the standard deviation of X is X = __________________ . In Exercises 57, fill in each blank with the appropriate word or...
Refer to Problem 5. Find the standard deviation of the number of pets. Problem 5 The following table presents a probability distribution for the number of pets each family has in a certain...
Following is the probability distribution for the age of a student at a certain public high school. a. Find the variance of the ages. b. Find the standard deviation of the ages. x 13 14 15 16 17 18...

If the duration of a bond being discounted a 6.6% is 3.3 years. Interest rates on comparable

Question:

Expert Answer:

We need to find the price of the ... View the full answer

Personal Finance

Students also viewed these finance questions