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QUESTION 12 Consider a 4-year 5% coupon bond selling for $102. The yield to maturity is 4%, and the par value for this bond is $100. Calculate the actual price of the bond for a 50 basís-point increase in interest rates. O A. $103.726 O B. $101.812 O C. $104.762 D. $99.23 QUESTION 13 Based on Question 12 above, estimate the price of the bond for a 100 basis-point increase in interest rates. A. $101.812 O B. $99.24 OC. $100.00 O D. $104.342

QUESTION 12 Consider a 4-year 5% coupon bond selling for $102. The yield to maturity is 4%, and the par value for this bond is $100. Calculate the actual price of the bond for a 50 basís-point increase in interest rates. O A. $103.726 O B. $101.812 O C. $104.762 D. $99.23 QUESTION 13 Based on Question 12 above, estimate the price of the bond for a 100 basis-point increase in interest rates. A. $101.812 O B. $99.24 OC. $100.00 O D. $104.342

Essentials Of Investments
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
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QUESTION 12 Consider a 4-year 5% coupon bond selling for $102. The yield to maturity is 4%, and the par value for this bond is $100. Calculate the actual price of the bond for a 50 basis-point increase in interest rates. O A. $103.726 O B. $101.812 O C. $104.762 D. $99.23 QUESTION 13 Based on Question 12 above, estimate the price of the bond for a 100 basis-point increase in interest rates. O A. $101.812 O B. 3. $99.24 O C. $100.00 D. $104.342
Transcribed Image Text:QUESTION 12 Consider a 4-year 5% coupon bond selling for $102. The yield to maturity is 4%, and the par value for this bond is $100. Calculate the actual price of the bond for a 50 basis-point increase in interest rates. O A. $103.726 O B. $101.812 O C. $104.762 D. $99.23 QUESTION 13 Based on Question 12 above, estimate the price of the bond for a 100 basis-point increase in interest rates. O A. $101.812 O B. 3. $99.24 O C. $100.00 D. $104.342
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