Question: No excel please and please show your work A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of

No excel please and please show your work  No excel please and please show your work A 30-year maturity
bond making annual coupon payments with a coupon rate of 15.3% has
duration of 10.59 years and convexity of 163.0. The bond currently sells
at a yield to maturity of 9%. a. Find the price of
the bond if its yield to maturity falls to 8%. (Do not

A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 10.59 years and convexity of 163.0. The bond currently sells at a yield to maturity of 9%. a. Find the price of the bond if its yield to maturity falls to 8%. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Price of the bond b. What price would be predicted by the duration rule? (Do not round Intermediate calculations, Round your answer to 2 decimal places.) Predicted price c. What price would be predicted by the duration-with-convexity rule? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price d-1. What is the percent error for each rule? (Enter your answer as a positive value. Do not round intermediate calculations. Round "Duration Rule" to 2 decimal places and "Duration with Convexity Rule" to 3 decimal places.) YTM 8% Percent Error Duration Rule Duration with Convexity Rule 1 d-2. What do you conclude about the accuracy of the two rules? The duration-with-convexity rule provides more accurate approximations to the actual change in price. The duration rule provides more accurate approximations to the actual change in price. e-1. Find the price of the bond if it's yield to maturity rises to 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bond e-2. What price would be predicted by the duration rule? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price e-3. What price would be predicted by the duration-with-convexity rule? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price e-4. What is the percent error for each rule? (Do not round Intermediate calculations. Round "Duration Rule" to 2 decimal places and "Duration with Convexity Rule" to 3 decimal places.) Percent Error Duration Rule Duration-with- YTM YTM Duration Rule Convexity Rule 10% e-5. Are your conclusions about the accuracy of the two rules consistent with parts (a) - (d)? Yes No

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