பட G H | J K L Σ N P Q R 139 140 141 138 15. A Consider two zero coupon bonds, S & L that represent a short-term and long-term maturity bond respectively. The two bonds have the following features: Bond S: Maturity = 3 years YTM = 6.73% YTM = 6.73% Bond L: Maturity = 15 years Par = Par = $1,000 $1,000 Price = Price = $822.51 $376.45 Which bond, the short-term bond S or the long-term bond L, exhibits a greater price change when both yields increase to 7.73%? 142 143 Price of Bond S when YTM = 7.73%: ? 144 Price of Bond L when YTM = 7.73%: ? Price change of S = Price change of L = ? ? Answer: 145 146 147 148 A B C D E 136 137 ? S T U V 150 151 152 149 16. A Consider two coupon bonds, HC and LC, with the same maturity but the different coupon rate. HC/LC represent a High/Low Coupon, respectively. Assume m = 1. The two bonds have the following features: Bond HC: Maturity = 10 years $40 Par = $1,000 $20 Bond LC: Maturity=10 years PMT = PMT = Par = $1,000 YTM = 7.00% YTM = 4.00% Price = $789.29 Price = $837.78 Which bond, the low-coupon bond LC or the high-coupon bond HC, exhibits a greater price change when both yields increase by 1%? 153 154 Price of Bond HC when YTM = 8%: ? Price change of HC = ? Answer: 155 Price of Bond LC when YTM = 5%: ? Price change of LC = ? ? 156 157 158
பட G H | J K L Σ N P Q R 139 140 141 138 15. A Consider two zero coupon bonds, S & L that represent a short-term and long-term maturity bond respectively. The two bonds have the following features: Bond S: Maturity = 3 years YTM = 6.73% YTM = 6.73% Bond L: Maturity = 15 years Par = Par = $1,000 $1,000 Price = Price = $822.51 $376.45 Which bond, the short-term bond S or the long-term bond L, exhibits a greater price change when both yields increase to 7.73%? 142 143 Price of Bond S when YTM = 7.73%: ? 144 Price of Bond L when YTM = 7.73%: ? Price change of S = Price change of L = ? ? Answer: 145 146 147 148 A B C D E 136 137 ? S T U V 150 151 152 149 16. A Consider two coupon bonds, HC and LC, with the same maturity but the different coupon rate. HC/LC represent a High/Low Coupon, respectively. Assume m = 1. The two bonds have the following features: Bond HC: Maturity = 10 years $40 Par = $1,000 $20 Bond LC: Maturity=10 years PMT = PMT = Par = $1,000 YTM = 7.00% YTM = 4.00% Price = $789.29 Price = $837.78 Which bond, the low-coupon bond LC or the high-coupon bond HC, exhibits a greater price change when both yields increase by 1%? 153 154 Price of Bond HC when YTM = 8%: ? Price change of HC = ? Answer: 155 Price of Bond LC when YTM = 5%: ? Price change of LC = ? ? 156 157 158
Chemistry
10th Edition
ISBN:9781305957404
Author:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Publisher:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste
Chapter1: Chemical Foundations
Section: Chapter Questions
Problem 1RQ: Define and explain the differences between the following terms. a. law and theory b. theory and...
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Transcribed Image Text:பட
G
H
|
J
K
L
Σ
N
P
Q
R
139
140
141
138 15. A Consider two zero coupon bonds, S & L that represent a short-term and long-term maturity bond respectively. The two bonds have the following features:
Bond S: Maturity = 3 years
YTM = 6.73%
YTM = 6.73%
Bond L: Maturity = 15 years
Par =
Par =
$1,000
$1,000
Price =
Price =
$822.51
$376.45
Which bond, the short-term bond S or the long-term bond L, exhibits a greater price change when both yields increase to 7.73%?
142
143
Price of Bond S when YTM = 7.73%:
?
144
Price of Bond L when YTM = 7.73%:
?
Price change of S =
Price change of L =
?
?
Answer:
145
146
147
148
A
B
C
D
E
136
137
?
S
T
U
V
150
151
152
149 16. A Consider two coupon bonds, HC and LC, with the same maturity but the different coupon rate. HC/LC represent a High/Low Coupon, respectively. Assume m = 1. The two bonds have the following features:
Bond HC: Maturity = 10 years
$40
Par = $1,000
$20
Bond LC:
Maturity=10 years
PMT
=
PMT =
Par = $1,000
YTM =
7.00%
YTM =
4.00%
Price = $789.29
Price = $837.78
Which bond, the low-coupon bond LC or the high-coupon bond HC, exhibits a greater price change when both yields increase by 1%?
153
154
Price of Bond HC when YTM = 8%:
?
Price change of HC =
?
Answer:
155
Price of Bond LC when YTM = 5%:
?
Price change of LC =
?
?
156
157
158
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