Solved: A bond has a macaulay duration of 842 and is priced to, Accounting Basics

+44 141 628 6080
[email protected]

A bond has a macaulay duration of 842 and is priced to

Question: A bond has a Macaulay duration of 8.42 and is priced to yield 7%. If interest rates go up so that the yield goes to 7.5%, what will be the percentage change in the price of the bond? Now, if the yield on this bond goes down to 6.5%, what will be the bond's percentage change in price? Comment on your findings.

Solution Preview :

Prepared by a verified Expert

Accounting Basics: A bond has a macaulay duration of 842 and is priced to

Reference No:- TGS02421800

Now Priced at $15 (50% Discount)

Recommended (98%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : An investor wants to find the duration of a 25-year 6

question an investor wants to find the duration of a 25-year 6 semiannual-pay noncallable bond thats currently priced

Q : Vulnerable groups are consumers who due to personal or

discuss in 100 words the following vulnerable groups are consumers who due to personal or situational influences are

Q : Write a java program based on the pseudo code you designed

assignment1 write a pseudo code to design a ticket purchasing application where the user chooses between a daily

Q : Explain what is meant by the metaphor of raising the

question onemichael leonora and gerry are friends who fly model aeroplanes in the weekends at a model aeroplane club

Q : A bond has a macaulay duration of 842 and is priced to

question a bond has a macaulay duration of 842 and is priced to yield 7 if interest rates go up so that the yield goes

Q : Why do you think the researcher is so important when

public administration research methodologieswhy do you think the researcher is so important when conducting qualitative

Q : Using annual compounding find the yield to maturity for

question using annual compounding find the yield to maturity for each of the following bondsa a 95 20-year bond priced

Q : Assume that an investor pays 800 for a long-term bond that

question assume that an investor pays 800 for a long-term bond that carries an 8 coupon in three years he hopes to sell

Q : Petro products corporation enter into an oral contract in

cindy agrees in writing to pay bob 5000 to accidentally hit and kill her horse which has a large insurance policy with

1927327

Questions
Asked

3,689

Active Tutors

1416711

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Teaching an adult client with type 1 diabetes mellitus

The nurse is teaching an adult client with type 1 diabetes mellitus about the need for eye examinations.

Outcome of the pregnancy of an adolescent client

Question: Which factor may have a permanent effect on the outcome of the pregnancy of an adolescent client?

Teaching regarding the use of oral contraceptives

Question: Which statement confirms the client understands the teaching regarding the use of oral contraceptives?

Problem concerning antibody screening test

At her first prenatal clinic visit, a primigravida has blood drawn for a rubella antibody screening test, and the results are positive.

Client has suffered a head injury

The nurse is admitting a client into the emergency room who has suffered a head injury. Which of the following assessment findings would indicate

Patient with advanced cancer has several morphine orders

A patient with advanced cancer has several morphine orders to manage pain. There is a continuous infusion ordered to run at 6 mg per hour

Client undergoes a modified radical mastectomy

A 36-year-old client undergoes a modified radical mastectomy. The nurse determines that the client understands the schedule for self-examination