Consider a 20-year, 5% coupon rate bond yielding 4.5 % / yr whose duration D is 13.31 years. If the bond's yield were to drop by 25 basis points, by what percentage would the price of the bond change?
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- Consider a bond that has a current value of $1,081.11, a face value of $1,000.00, a coupon rate of 10% and five years remaining to maturity.a. What is the bond’s yield-to-maturity today?b. If the bond’s yield does not change, what is its value one year from today? Please solve both partsConsider a bond with a 10% coupon and yield to maturity = 8%. If the bond’s yield to maturity remains constant, then in one year, will the bond price be higher, lower, or unchanged? Why?Consider a bond that has a current value of $1,081.11, a face value of $1,000.00, a coupon rate of 10% and five years remaining to maturity.a. What is the bond’s yield-to-maturity today?b. If the bond’s yield does not change, what is its value one year from today?
- A 30-year maturity bond making annual coupon payments with a coupon rate of 11.00% has a ation of 13.50 years. The bond currently sells at a yield to maturity of 5.75%. Ducation a. Find the exact dollar price of the bond if its yield to maturity falls to 4.75%. What is the % change in price? b. Assume that you need to make a quick approximation using the duration rule. What is the % change in price as approximated by the duration rule when the yield to maturity falls to 4.75%? c. Does the duration-rule provide a good approximation of the % price change in this case? Why or why not?1. Consider a real return bond with a face value of $15,000 and a coupon yield of 5.2%. What is the coupon payment after one year if the inflation rate is 6.8%? Select one: a) $817.44 b) $833.04 c) $825.24 d) $809.64 IConsider a risk-free zero-coupon bond with face value $1000, 20 years to maturity. If the yield to maturity (YTM) is 6%, the price at which this bond will trade is closest to: A. $167.44 B. $312 C. $214.55 D. $174
- Consider a bond that pays annually an 8% coupon with 20 years to maturity. The percentage change in the price of the bond if its yield to maturity increases from 5% to 7% is closest to: A. −22.5%. B. 22.5%. C. −19.5%. D. 24.5%.A n-year annual coupons bond with coupon rate r per year. The yield rate is 0.10. Calculate the Macaulay duration of the bond for all four possible combinations of parameters: • n = 10 or 30 • r = 0.05 or 0.15Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) Zero-Coupon YTM 1 3 4 3.25% 3.50% 3.90% 4.25% 4.40% Consider a five-year, default-free bond with an annual coupon rate of 5% and a face value of $1000. What is the YTM of this bond ?
- multible chice, Consider a 20-year bond with a 9.5% coupon that has a present yield-to maturity (YTM) of 7.5%. If interest rates remain constant, one year from now the price of this bond will be? why? higher lower the same cannot be determined.Suppose a 10 -year,$1,000bond with a(n)9%coupon rate and semiannual coupons is trading for a price of$946.34. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to9%APR, what will the bond's price be?Question A .Consider a 2-year, risk-free bond with a coupon rate of 6% (annual coupons) and a face value of $1,000. If the yield on the above bond is 6%: a. What is the Macaulay duration of this bond? b. If the yield increases to 7% immediately, what does the duration approximation predict will be the percentage change in the bond price? c. If the yield decreases to 5% instead, what is the approximate percentage change in the bond price implied by the bond’s duration? d. After receiving the first coupon payment in year 1, the yield increases to 7% and you decide to sell the bond. What is your annualized HPR? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line