Change in price the bond will experience in dollars

Assignment Help Financial Management

Reference no: EM131853925

Bond Prices and Interest Rate Changes

A 6.20 percent coupon bond with 10 years left to maturity is priced to offer a yield to maturity of 7.4 percent. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131853925

Questions Cloud

Relative value of the chemical potential of a sodium : What does that say about the relative value of the chemical potential of a sodium or chloride ion in air, in a salt crystal, and in water?

Relative value of the chemical potential : What does that say about the relative value of the chemical potential of a sodium or chloride ion in air, in a salt crystal, and in water?

Prevent leachate from migrating into the groundwater : The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater.

Relative fluctuations in its internal energy : Roughly what is the minimum thickness for this film if we want the relative fluctuations in its internal energy (oE/E) to be less than a tenth of a part

Change in price the bond will experience in dollars : Bond Prices and Interest Rate Changes. What is the change in price the bond will experience in dollars?

Would this prevent you from using the oven to cook food : (a) How will you do it? What would be the thermometric (measured) parameter that you would use? (b) Would this prevent you from using the oven to cook food?

Cash flows were becoming concern : Mega Corp. extends credit terms of 30 days to its customers. If its average collection period was 55 days, and cash flows were becoming a concern,

Examine the professional behavior of dental hygienists : A study was conducted to examine the professional behavior of dental hygienists. Information was available on whether they read professional journal

Alternate transportable fuel for automobiles and trucks : Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks.

User Account

All Pages