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The duration of these bonds is 9.4892 years. What are the predicted bond prices in each of the four cases using the duration rule? Do not round intermediate calculations. Enter all answer as positive numbers, Round your answers to decimal places, (ep.32.16) AL-A 10% 4-0.10% M-204 AL-ZON Bonds New Price 5 000.00 990 51

The duration of these bonds is 9.4892 years. What are the predicted bond prices in each of the four cases using the duration rule? Do not round intermediate calculations. Enter all answer as positive numbers, Round your answers to decimal places, (ep.32.16) AL-A 10% 4-0.10% M-204 AL-ZON Bonds New Price 5 000.00 990 51

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
Problem 1PS
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MLK Bank has an asset portfolio that consists of $150 million of 15-year. 7.5 percent annual coupon, $1,000 bands that sell at par e-1. What will be the bonds new prices if market yields change immediately by ± 010 percent? a-2. What will be the new prices if market yields change immediately by = 2.00 percent? b-1. The duration of these bonds is 9.4892 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 The duration of these bonds is 9.4892 years. What are the predicted bond prices in each of the four cases using the duration rule? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to decimal places, (ep.32.16)) AL-A 10% AL-0.10% A-20% At-20N Bonds' New Price E 000.00 990 51 <Required A2 Required 2 >
Transcribed Image Text:MLK Bank has an asset portfolio that consists of $150 million of 15-year. 7.5 percent annual coupon, $1,000 bands that sell at par e-1. What will be the bonds new prices if market yields change immediately by ± 010 percent? a-2. What will be the new prices if market yields change immediately by = 2.00 percent? b-1. The duration of these bonds is 9.4892 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 The duration of these bonds is 9.4892 years. What are the predicted bond prices in each of the four cases using the duration rule? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to decimal places, (ep.32.16)) AL-A 10% AL-0.10% A-20% At-20N Bonds' New Price E 000.00 990 51 <Required A2 Required 2 >
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