How much change will there be in the bond price

Assignment Help Finance Basics
Reference no: EM132999427

An 8%, 15-year bond has a yield to maturity of 10% and a modified duration of 7.25 years. If the market yield changes by 50 basis points, how much change will there be in the bond's price?

Reference no: EM132999427

Questions Cloud

Estimate the cost of equity for mcdonald : Caliber's Burgers and Fries is a rapidly expanding chain of fast-food restaurants, and the firm's management wants to estimate the cost of equity for the firm.
Why the equally weighted portfolio is useful : Explain why the equally weighted portfolio is useful for attribution analysis?
Describe real estate agents ethical responsibility : Although there is not an official code for all real estate agents, many are members of the National Association of Realtors, which has an ethics code.
Find percentage price change : Consider a bond selling at par with modified duration of 15-years and convexity of 215. What would be the percentage price change according to the duration-with
How much change will there be in the bond price : An 8%, 15-year bond has a yield to maturity of 10% and a modified duration of 7.25 years. If the market yield changes by 50 basis points, how much change will t
Evaluating personal financial statement : Think about how you would do budget planning and figuring out your net worth, and share your approach. How would you go about evaluating your personal financial
Explain the estate planning issues associated : Explain the estate planning issues associated with cohabitation or nontraditional family arrangements or the advantages and disadvantages of specific estate pl
How much does wendy gain from preparing tax return : Wendy Brooks prepares her own income tax return each year. A tax preparer would charge her $95 for this service. Over a period of 11 years, how much does Wendy
What is the pvgo for the company : You are asked to value a company NewLight, which operates in a utility sector. Over the last few years, the company has managed to have an ROE of 20%, and a div

Reviews

Write a Review

Finance Basics Questions & Answers

  Outlining the effects of financial planning

Write an APA style paper outlining the effects of financial planning, governance and ethical issues in modern economies. This paper should be between 1750 - 2000 words and should identify current policies or initiatives to promote ethical behavior..

  What were annual sales for stacky in 2017

At the end of 2017, Stacky Corp. had $500,000 in liabilities and a debt-to-assets ratio of 0.5. For 2017, Stacky had an asset turnover of 3.0.

  What is the current price of ordinary shares

FIN203 Banking and Finance Research Project, King's Own Institute, Australia. What is the current price of ordinary / common shares in BHP

  Low-risk, average-risk projects, and high-risk projects

A Corporation has an equal number of low-risk projects, average-risk projects, and high-risk projects. The company estimates that the overall company's WACC is 12 percent.

  Traditional foreign currencies

To what extent should the company report about the use of crypto currencies in receivables and payments and (when different) is that different

  For this discussion identify the appropriate application of

for this discussion identify the appropriate application of standardized scores to reflect on their benefits and to

  What strategy was procter-gamble pursuing

Read the Management Focus on Procter & Gamble (Page 440) and then answer the following questions:

  What is the role of a discount rate in decision-making

What is the responsibility of the investment manager with respect to the investment portfolio? Distinguish between capital budgeting and capital structure.

  What was the rate of return earned on the bond

What was the rate of return earned on the bond during the year you had it?

  What is the required return

The dividends are anticipated to maintain a growth rate of 4.5 percent forever. If the stock currently sells for $39.85 per share, what is the required return?

  What is the stated or coupon rate of a bond

What is the stated or coupon rate of a bond? - How does a bond's stated rate differ from its yield rate? Which one is used to calculate the interest payment?

  What is the expected return and standard deviation

What is the expected return and standard deviation of a portfolio composed of 30 percent Pronghorn and 70 percent Stellar?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd