You hold a zero coupon bond when there is a sudden change in interest rates. It has 18 years to maturity. Yield to maturity is 0.055, and rates change by FALLING -0.008 overnight. By how much does your bond change in value as a percentage or decimal? (Zero coupon bonds assume semi-annual compounding.) 0.1601 0.1689 0.1508 0.1642 0.1556
You hold a zero coupon bond when there is a sudden change in interest rates. It has 18 years to maturity. Yield to maturity is 0.055, and rates change by FALLING -0.008 overnight. By how much does your bond change in value as a percentage or decimal? (Zero coupon bonds assume semi-annual compounding.) 0.1601 0.1689 0.1508 0.1642 0.1556
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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You hold a zero coupon bond when there is a sudden change in interest rates. It has 18 years to maturity. Yield to maturity is 0.055, and rates change by FALLING -0.008 overnight.
By how much does your bond change in value as a percentage or decimal?
(Zero coupon bonds assume semi-annual compounding.)
By how much does your bond change in value as a percentage or decimal?
(Zero coupon bonds assume semi-annual compounding.)
0.1601
0.1689
0.1508
0.1642
0.1556
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