Bonds would have greatest percentage increase

Assignment Help Financial Management

Reference no: EM13890336

Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?

5-year, zero coupon bond.

30-year, 15% coupon bond.

30-year, zero coupon bond.

1-year, 15% coupon bond.

30-year, 5% coupon bond.

Reference no: EM13890336

Questions Cloud

What is maximum price you should be willing to pay for bond : Assume that you are considering the purchase of a 30-year, noncallable bond with a coupon rate of 4%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require a 5% yield to maturity on this investment, what is th..

Based on semiannual compounding-what is the bonds price : Kordyk Corporation's bonds have a 15-year maturity, a 8.2% semiannual coupon, and a par value of $1,000. The going interest rate (YTM) is 8.0%, based on semiannual compounding. What is the bond’s price?

Market interest rate on these bonds : Crossdyme Corporation issued 30-year, noncallable, 8.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 10%. What is the current price of the bonds, given that they now have 29 years to..

Stock portfolio consists of only two stocks : Your stock portfolio consists of only two stocks. You have $115,000 in Company A and $125,000 in Company B. Company A has an actual return of -8% and Company B has a return of 12%. What is the return on your portfolio?

Bonds would have greatest percentage increase : Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?

What justi?es the inclusion of a disturbance : What justi?es the inclusion of a disturbance or error term in regression analysis?

New stocks required rate of return : A stock has a required return of 15%; the risk-free rate is 4%; and the market risk premium is 4%. New stock's required rate of return will be %. Round your answer to two decimal places.

Bonds mature-what is the bonds price : Darlyn Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of $45. The market requires an interest rate of 5.0% (yield to maturity = 5.0%) on these bonds. What is the bond's price?

What is the yield to maturity and yield to call : Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 12% annual coupon payment, and their current price is $1,180. The bonds may be called in 5 years at 109% of face value (Call price = $1,..

User Account

All Pages