Question: Please help me solve #9 and without excel. with financial calcuator. thanks The following information relates to Questions 7 through 10 An Italian bank holds

Please help me solve #9 and without excel. with financial calcuator. thanks
The following information relates to Questions 7 through 10 An Italian bank holds a large position in a 7.25% annual coupon payment corporate bond that matures on 4 April 2029. The bond's yield-to-maturity is 7.44% for settlement on 27 June 2014, stated as an effective annual rate. The settlement date is 83 days into the 360-day year using the 30/360 day counting method. (NOTE: Use 6 decimal places in your calculator when you calculatel) 7. Calculate the full price of the bond per 100 of par value. 8. Calculate the approximate modified duration and approximate convexity using a 0.01% increase and decrease in the YTM. 9. Calculate the estimated percentage price change using only the modified duration and using a 100 bp(1%) increase in the YTM. The following information relates to Questions 7 through 10 An Italian bank holds a large position in a 7.25% annual coupon payment corporate bond that matures on 4 April 2029. The bond's yield-to-maturity is 7.44% for settlement on 27 June 2014, stated as an effective annual rate. The settlement date is 83 days into the 360-day year using the 30/360 day counting method. (NOTE: Use 6 decimal places in your calculator when you calculatel) 7. Calculate the full price of the bond per 100 of par value. 8. Calculate the approximate modified duration and approximate convexity using a 0.01% increase and decrease in the YTM. 9. Calculate the estimated percentage price change using only the modified duration and using a 100 bp(1%) increase in the YTM
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
