Question: Please help me with this! QUESTION 1 Consider the following bond: $1000 face value, coupon rate of 7.5%, paid semi-annually, remaining maturity of 10 years.
QUESTION 1 Consider the following bond: $1000 face value, coupon rate of 7.5%, paid semi-annually, remaining maturity of 10 years. The bond is currently trading at a YTM of 7.5%. What is it's interest rate risk (as defined in the course PowerPoints)? Provide the answer as a % accurate to two decimal points. Enter only a number with a decimal point. Do not enter a % symbol or any other punctuation. QUESTION 2 Consider the following bond: $1000 face value, coupon rate of 12.5%, paid annually. The bond has a remaining maturity of 11 years. The bond is currently trading at a price of $1566.48. What is it's interest rate risk (as defined in the course PowerPoints)? Provide the answer as a % accurate to two decimal points. Enter only a number with a decimal point. Do not enter a % symbol or any other punctuation
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