10 Please use "Only" the "Duration" formula below to answer Questions 13 to Question 1601020304Duration=% Change in Bond PriceYield Change in %05060710809 14) If a bond's yield rise from 6% to 8% and its price falls 1.5%, calculate the duration1011121314 15) If a bond's yield decrease by 0.3% and its price increase by .5%, calculate its duration15116117118119120121 16) A bond is currently trading at $1,025 has a yield of 6.82% and has a duration of 6.25. If the yield rises to 7.5%, calculate the new price of the bond122123124New Bond Price =

Several questions appear on the screen based on the concept of duration. A formula has also been…

Please use "Only" the "Duration" formula below to answer Questions 13 to Question 16 Duration=- 14) If a bond's yield rise from 6% to 8% and its price falls 1.5%, calculate the duration 16 % Change in Bond Price Yield Change in % 415) If a bond's yield decrease by 0.3% and its price increase by .5%, calculate its duration 5 17 18 19 20 21 16) A bond is currently trading at $1,025 has a yield of 6.82% and has a duration of 6.25. If the yield rises to 7.5%, calculate the new price of the bond 22 23 New Bond Price = 24

Please use "Only" the "Duration" formula below to answer Questions 13 to Question 16 Duration=- 14) If a bond's yield rise from 6% to 8% and its price falls 1.5%, calculate the duration 16 % Change in Bond Price Yield Change in % 415) If a bond's yield decrease by 0.3% and its price increase by .5%, calculate its duration 5 17 18 19 20 21 16) A bond is currently trading at $1,025 has a yield of 6.82% and has a duration of 6.25. If the yield rises to 7.5%, calculate the new price of the bond 22 23 New Bond Price = 24

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

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a) Determine the price of Bond X if it has 3 years to maturity, a par-value of $2500, a coupon rate of 5% paid annually and the rate of return in the bond market is fixed at 9%: (b) Hence, compute the duration of Bond X from Question 2(a) above. (c) List and explain one type of risk associated with bonds. 164 words 1284 MAR 12 MacBook Air D00 F1 F2 F3 F4 & 2$ 4 6 Q W
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f the interest rate increases from 2% to 4%, given the duration of the bond equals 1.5, the price of the bond will a. increase by 2.9412%. b. decrease by 2.8846%. c. increase by 0.02885%. d. decrease by 2.9412%.
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不 Which of the bonds A to D is most sensitive to a 1%drop in interest rates from Consider the following bonds: 6.5% to 5.5% Which bond is least sensitive? Bond Data table is most sensitive. (Select from the drop-down menu.) (Click on the following icon in order to copy its contents into a spreadsheet.) Bond A BC D Coupon Rate (annual payments) 0.0% 0.0% 4.3% 7.7% Print Done Maturity (years) 10 15 15 10
K Using the formula given below: F-P P if the market price of a $1,000-face-value discount bond changes from $925 to $950, the yield to maturity decreases by%. (Round your response to two decimal places.) Rbonds =
(PLEASE READ THIS DIRECTION)Rules for Bond Valuation Problem Solving:a. For the "PV FACTOR in computing the PV of the coupon and PV for the maturity value/ principal use until 8-9th decimal place" before multiplying the coupon payment or future value.Example: ___x 2.123456789 or 22.12345678b. For "COMPOUNDED RATES" include all decimals in the rate (do not round off).Example semi-annual: 13%/2 =0.065c. For the "VALUE OF THE BOND/ PRICE OF THE BOND" round off your answers and final answers into whole numbers.Example: 824.59= 825 1. A bond issued by Delta Corporation matures in 12 years. It has a 12.5 percent annual coupon rate and a face value of P10,000. The bond has a discount rate to maturity of 9.5 percent. What is the price of Omega's bond today?
An investor wants to find the duration of a(n) 15-year, 6% semiannual pay, noncallable bond that's currently priced in the market at $587.05, to yield 12%. Using a 150 basis point change in yield, find the effective duration of this bond (Hint: use Equation 11.11). Question content area bottom Part 1 The new price of the bond if the market interest rate decreases by 150 basis points (or 1.5%) is $enter your response here. (Round to the nearest cent.)
* Assignment 3 i Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume face value is $100. Bond Coupon (%) 248 a. What is the yield to maturity of each bond? b. What is the duration of each bond? Price (%) 80.36 96.95 135.22 Complete this question by entering your answers in the tabs below. Required A Bond Coupon (%) 2 4 8 Required B What is the yield to maturity of each bond? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. YTM % % % Saved 22255 35445
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Question 2 a. A bond that matures in one year has a $500 face value and a $60 coupon. What is the price of the bond if the interest rate is 6 percent and the bond was purchased by the present owner for $450? b. A bond that matures in two years has a face value equal to F and a coupon equal to R. Suppose that the yield to maturity, i, is such that i = ( R / F ). The price of the bond equals... F F/(1+i) F(1+i) F/i Answer both otherwise don't do that I will Dounvote
BASIC (Questions 1-17) 1. Interpreting Bond Yields Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond now? The YTM? LO 2 LO 2 2. Interpreting Bond Yields Suppose vou buy a 7 percent counon 20-vear

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