-
+1 - 312-224-1615
Get in touch with us
-
support@helpwithassignment.com
Send us an e-mail
Solution Library
Calculate The Change In Price Of Coupon Bond With Change In Interest Rate
Question
Consider a five-year, 8 percent annual coupon bond selling at par of $1,000.
1. What is the duration of this bond?
a. 5 years.
b. 4.31 years.
c. 3.96 years.
d. 5.07 years.
e. Not enough information to answer.
2. If interest rates increase by 20 basis points, what is the approximate change in the market price using the duration approximation?
a. –$7.98.
b. –$7.94.
c. –$3.99.
d. +$3.99.
e. –$7.94.
3. Using present value bond valuation techniques, calculate the exact price of the bond after the interest rate increase of 20 basis points.
a. $1,007.94.
b. $992.02.
c. $992.06.
d. $996.01.
e. $1003.99.
Summary
These short questions belong to Finance and the questions deal with a 5 year, 8% coupon bond selling at $1000. The duration of the bond, the price of the bond based on the increase in interest rates needs to be calculated.
Total Word Count 97
Download Full SolutionWHAT OUR STUDENTS SAY
There was a research based assignment on the clinical services available for the aboriginals of New Zealand and for that I needed some expert who knows the nursing industry of New Zealand more than anything else. Luckily here I got hold of one lovely professor who helped me that assignment and many other assignments in the due time.
Sharon Nash Student
Being a research scholar in Australia demands that you submit your research proposals and dissertations in a particular format and follow a typical form of expression chalked out by your dissertation advisors. The online dissertation writing help experts at TheReliableTutor based out of Australia understand this specific need and write the research proposals and subsequent dissertation to meet those exact specifications. There is no disconnect between your requirements and the finished dissertation submitted.
Connor Matthews Student
I needed help with my assignment pertaining to cirrhosis of liver and was unable to find any decent help online. Then when I searched and searched, I landed at HwA and was astonished to find that they have a specific hepatic system unit of nursing experts. Was thrilled to find help here and got good grade in that assignment.
Dawn Stevenson Student
1. Earlier I used to find excuses for not doing my operations management homework, when Veronica, my friend told me about HwA and then everything fell into place. Starting from the inventory management assignments to the critical path measure problem solutions, their operations management tutors helped me get a straight A in all the homework.
Timothy Chapman Student
My My dream of becoming a corporate cost accountant was hindered when I stumbled into the maze of the statements of financial position. However, the accounting assignment help experts at TheReliableTutor.com helped me go through the rough patch and now while I am pursuing my Masters also, I rely on them and only them.
Alexandra Metaxas Student
Comments
this is a very good website
I have 50 questions for the same test your page is showing only 28
hi can you please help or guide me to answer my assignments. thanks
hi can anyone help or guide me to my assignments. thanks
This solution is perfect ...thanks
Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes
Perfect bank of solution.
great !
thanks for the quick response. the solution looks good. :)
thnx for the answer. it was perfect. just the way i wanted it.
works fine.