: nformation A bond has a par value of $1,000, a coupon rate of 10.66 percent (paid annually), and that matures in 5 years. Assume the market interest rate on this bond is 14.71 percent and it decreases 36 basic points. Calculate the percentage change in the value of the bond. (You should calculate duration of the bond first). Please note that the percentage change in the value of the bond should be entered as a negative number is the value decreases. It should be entered as a positive number if the value increases. Round the answer to two or more decimal places in percentage form. Please write % sing in a units box.. You should use an online Duration calculator. One is provided at this link (copy and paste the link into another browser tab): https://exploringfinance.com/bond-duration-calculator/ Your Answer: Answer units Next Page MacBook Pro $ % 5 6 @ 4 3 87 & * 8 00 Page 3 of 3 9 O C P + 11 { delete
: nformation A bond has a par value of $1,000, a coupon rate of 10.66 percent (paid annually), and that matures in 5 years. Assume the market interest rate on this bond is 14.71 percent and it decreases 36 basic points. Calculate the percentage change in the value of the bond. (You should calculate duration of the bond first). Please note that the percentage change in the value of the bond should be entered as a negative number is the value decreases. It should be entered as a positive number if the value increases. Round the answer to two or more decimal places in percentage form. Please write % sing in a units box.. You should use an online Duration calculator. One is provided at this link (copy and paste the link into another browser tab): https://exploringfinance.com/bond-duration-calculator/ Your Answer: Answer units Next Page MacBook Pro $ % 5 6 @ 4 3 87 & * 8 00 Page 3 of 3 9 O C P + 11 { delete
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![:
nformation
A bond has a par value of $1,000, a coupon rate of 10.66 percent (paid annually), and
that matures in 5 years. Assume the market interest rate on this bond is 14.71
percent and it decreases 36 basic points. Calculate the percentage change in the
value of the bond. (You should calculate duration of the bond first).
Please note that the percentage change in the value of the bond should be entered
as a negative number is the value decreases. It should be entered as a positive
number if the value increases.
Round the answer to two or more decimal places in percentage form. Please write %
sing in a units box..
You should use an online Duration calculator. One is provided at this link (copy and
paste the link into another browser tab):
https://exploringfinance.com/bond-duration-calculator/
Your Answer:
Answer
units
Next Page
MacBook Pro
$
%
5
6
@
4
3
87
&
*
8
00
Page 3 of 3
9
O
C
P
+ 11
{
delete](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fede57e88-f39a-474e-aa51-295fd60a7ccb%2F2242847b-d208-4c8c-ab03-372cfea639e6%2F5r7v9w4_processed.jpeg&w=3840&q=75)
Transcribed Image Text::
nformation
A bond has a par value of $1,000, a coupon rate of 10.66 percent (paid annually), and
that matures in 5 years. Assume the market interest rate on this bond is 14.71
percent and it decreases 36 basic points. Calculate the percentage change in the
value of the bond. (You should calculate duration of the bond first).
Please note that the percentage change in the value of the bond should be entered
as a negative number is the value decreases. It should be entered as a positive
number if the value increases.
Round the answer to two or more decimal places in percentage form. Please write %
sing in a units box..
You should use an online Duration calculator. One is provided at this link (copy and
paste the link into another browser tab):
https://exploringfinance.com/bond-duration-calculator/
Your Answer:
Answer
units
Next Page
MacBook Pro
$
%
5
6
@
4
3
87
&
*
8
00
Page 3 of 3
9
O
C
P
+ 11
{
delete
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