d-2. What do you conclude about the accuracy of the two rules? The duration-with-convexity rule provides more accurate approximations to the actual change in price. The duration rule provides more accurate approximations to the actual change in price. e-1. Find the price of the bond if it's yield to maturity rises to 9%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of the bond e-2. What price would be predicted by the duration rule, if it's yield to maturity rises to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price

に COURSE LEARNING OBJECTIVE: Students will use electronic worksheets or other productivity tools to solve problems and develop models. EXCEL LEARNING OBJECTIVES: - Use the built-in formulas to determine the present value (PV) of a bond - Use the built-in formulas to determine the effective issuance rate of a bond with issue costs (RATE) - Set up an automated bond amortization schedule. - Name cells using the Name Box - Use Scenario Manager to create a scenario describing the effects of a change in the market interest rate (an independent variable) on the proceeds from issuing the bond (a dependent variable) and the corresponding total interest expense (a dependent variable) over the term of the bond. Correcting entries for bonds transactions AAA Inc. recently hired a new accountant with extensive experience in tax accounting. Because of the pressures of the new job, the accountant was unable to review the topic of accounting for bonds payable. During the first year, he made the…

Q1 works, show how interest rates are affected when the riskiness of bonds rises. Are the results the same in the two frameworks? (Answer the question by drawing the appropriate supply and demand diagrams) Using both the supply and demand for bonds and liquidity preference frame-

With regard to interest rate sensitivity measures and bonds: Group of answer choices C. Convexity attempts to capture the sensitivity of a bond’s duration to changes in interest rates. D. Both B & C B. Duration is related to yield approximation and convexity is related to price. A. Convexity is related to yield approximation and duration is related to price