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A bond with a 8-year duration is worth $1,077, and its yield to maturity is 7.7%. If the yield to maturity falls to 7.57%, you would predict that the new value of the bond will be approximately
Multiple Choice
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$1,075.60
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$1,077.00
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$1,087.45
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$1,078.40
Step by step
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- Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for 1,135.90, producing a nominal yield to maturity of 8%. However, the bond can be called after 5 years for a price of 1,050. (1) What is the bonds nominal yield to call (YTC)? (2) If you bought this bond, do you think you would be more likely to earn the YTM or the YTC? Why?A bond with a 8-year duration is worth $1,074, and its yield to maturity is 7.4%. If the yield to maturity falls to 7.30%, you would predict that the new value of the bond will be approximately _________. a)$1,082.06 b)$1,075.07 c)$1,074.00 d) $1,072.93A bond with a 9-year duration is worth $1,080, and its yield to maturity is 8%. If the yield to maturity falls to 7.50%, you would predict that the new price of the bond will be “approximately” _________. Group of answer choices A. $1,125 B. $1,094 C. $1,035 D. $1,036
- Consider a 10-year bond with current price of $98.4 and a duration of 9.1 years. Suppose the yield on the bond is 9.6% per year with continuous compounding. What is the predicted change in the price (in dollars) of the bond if the yield increases by 0.4%? (required precision: 0.01 +/- 0.01)Suppose a 10-year, $ 1 comma 000 bond with an 8.1% coupon rate and semi - annual coupons is trading for a price of $1 comma 034.81. a. What is the bond's yield to maturity (expressed as an APR with semi - annual compounding)? b. If the bond's yield to maturity changes to 9.7% APR, what will the bond's price be?Suppose a 10-year, $1,000 bond with an 8.0% coupon rate and semi-annual coupons is trading for a price of $1,034.74. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.0% APR, what will the bond's price be? a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? The bond's yield to maturity is %. (Round to two decimal places.)
- A bond currently sells for 1,200, which gives it a yield to maturity of 8%. Suppose that if the yield increases by 25 basis points, the price of the bond declines to 1,155. Based on this price change, what is the duration of the bond? How do i calculate this?Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,035.65. 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 to 9.9% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is%. (Round to two decimal places.)Suppose a 10-year, $1,000 bond with an 8.4% coupon rate and semi-annual coupons is trading for a price of $1,035.09. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.8% APR, what will the bond's price be? a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? The bond's yield to maturity is 7.88 %. (Round to two decimal places.) b. If the bond's yield to maturity changes to 9.8% APR, what will the bond's price be? The new price for the bond will be $ (Round to the nearest cent.)
- Suppose a 10-year, $1,000 bond with an 8.9% coupon rate and semi-annual coupons is trading for a price of $1,035.97. a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)? b. If the bond's yield to maturity changes to 9.6% APR, what will the bond's price be?Consider a zero-coupon bond with a $1,000 face value and 10 years to maturity. The price this bond will trade if the Yield To Maturity is 7.1% is closest to: A) $604.35 B) $805.8 C) $705.07 D) $503.62Suppose a ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,035.03. 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 to 9.6% APR, what will be the bond's price? a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? The bond's yield to maturity is ☐ %. (Round to two decimal places.)
