13. Calculate the percentage change in a bond's price if its current yield is 8 percent, rates are expected to decrease by 0.25% and the bond's duration is 7.5. 1.875%- b. -1.875% c. 1.736% d. -1.736% 15002520.01975 x\
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- 13. Calculate the percentage change in a bond's price if its current yield is 8 percent, rates are expected to decrease by 0.25% and the bond's duration is 7.5. 1.875%- b. -1.875% c. 1.736% d. -1.736% 15002520.01975 x\Consider the following bonds: Bond A B CD с Coupon Rate (annual payments) 0.0% 0.0% 4.3% 7.7% The percentage change in the price of bond A is |___%. (Round to one decimal place.) What is the percentage change in the price of each bond if its yield to maturity falls from 6.9% to 5.9%? The percentage change in the price of bond B is %. (Round to one decimal place.) Maturity (years) 15 The percentage change in the price of bond C is %. (Round to one decimal place.) The percentage change in the price of bond D is %. 215004- Calculate the equilibrium interest rate of a 1-year discount bond with a face value of 1000. The demand and supply curves for this bond are represented by the following equations: ( B4: Price = -0.8 * Quantity + 1160 B": Price = Quantity +720
- P 6.23 Consider the following bonds: Bond Coupon Rate (annual payments) Maturity (yr.s) A 0% 15 B0 % 10 C 4% 15 D 8% 10 What is the percentage change in the price of each bond if its yield to maturity falls from 6% to 5% ?7.11 A term structure is defined by the following accumulation function: a(t)=e0.03t, for 0 <t≤ 5,e0.06+0.0025(1+t)2, for t>5. If a 10-year bond makes level coupon payments at year 2, 4, 6, 8 and 10.Find the par yield of this bond.Assume that the modified duration of a bond is 2.45 years and that the potential adverse move in yield is 16.5 basis points. What is the bond's price volatility (round to two decimals)? A. -2.45 ´ 0.0165 = -4.04%. B. 2.45 X 0.00165 = 0.40%. C. -2.45 ´ 0.00165 = -0.40%. D. 2.45 ´ 0.0165 = 4.04%.
- K Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): 0 2 5 Period $19.53 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Cash Flows View an example Get more help. ★ a. What is the maturity of the bond (in years)? The maturity is years. (Round to the nearest integer.) A 6 1 MacBook Pro & 7 $19.53 * 8 9 C 59 $19.53 60 $19.53+$1,000 Clear all BUB 0 {Bonds have a maturity risk premium that can be modeled as the following:MRP = (t-1) 0.3%were t represents the years to maturity. What is the Maturity risk premium of a bond that matures in 8 years? answer in % without the symbol5. Consider a bond that offers a nominal yield of 6%. If the expected rate of inflation is 3%, according to the Fisher Effect, what is the real yield of the bond? (2 points) A) 2.91% of B) 3.00% C) 5.83% D) 9.00% evijegen inuocaib enom agnibivonq ylevitoste 1
- Suppose the current price of the bond is $95, the YTM is 4%, and the duration of the bond is 9. If YTM decrease from 4% to 3.9%, approximate the change in price using duration of the bond. Price would increase by ____%The following information about bonds A, B, C, and D are given. Assume that bond prices admit noarbitrage opportunities. What is the convexity of Bond D?Cash Flow at the end ofBond Price Year 1 Year 2 Year 3A 91 100 0 0B 86 0 100 0C 78 0 0 100D ? 5 5 10510 Please use "Only" the "Duration" formula below to answer Questions 13 to Question 16 01 02 03 04 Duration= % Change in Bond Price Yield Change in % 05 06 07 108 09 14) If a bond's yield rise from 6% to 8% and its price falls 1.5%, calculate the duration 10 11 12 13 14 15) If a bond's yield decrease by 0.3% and its price increase by .5%, calculate its duration 15 116 117 118 119 120 121 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 122 123 124 New Bond Price =