Find the percentage change in price for zero coupon bond

Reference no: EM132032163

Question: What is the percentage change in price for a zero coupon bond if the yield changes from 7.5% to 8.5%? The bond has a face value of $1,000 and it matures in 10 years. Use the price determined from the first yield, 7.5%, as the base in the percentage calculation. The percentage change in the bond price if the yield changes from 7.5% to 8.5% is %. (Round to two decimal places.)

Reference no: EM132032163

Questions Cloud

Compute the overhead rate for each activity pool : Exercise - Computing overhead rates based on different costing drivers. Compute the overhead rate for each activity pool

Describe the importance of further research : Summarize in your own words how the source contributes to the solution of the global societal issue for each annotation.

Eliminate the potential for the phc tax : Per the text, the personal holding company (PHC) tax penalizes taxpayers who enter into tax-motivated transactions designed to shelter passive income.

Calculate the current yield using given data : A perpetual bond with a par value of $1,000.00 and a semiannual coupon has a nominal yield to maturity of 5.20% and a current price of $1,055.00.

Find the percentage change in price for zero coupon bond : What is the percentage change in price for a zero coupon bond if the yield changes from 7.5% to 8.5%? The bond has a face value of $1,000 and it matures.

How does poverty affect the functioning of the family system : Knowing and understanding of the multiple influences on the development and learning of children.

At what interest rate would the given be a fair deal : Suppose the Perpetual Life Insurance Co. told you the policy costs $270,000. At what interest rate would this be a fair deal? (Enter your answer as a percent.

Find the monthly average seasonal funds requirements : Divide the firm's monthly total funds requirement (total assets) into a permanent and a seasonal component. Find the monthly average (1) permanent.

Describe the market in terms of its anticipated growth : Describe your rationale for selecting the target markets that you did. State why these markets are attractive to you as a marketer.

User Account

All Pages