How much would the bond price change

Assignment Help Financial Management

Reference no: EM131819241

A $1,000 par value bond with four years left to maturity pays an interest payment semiannually with a 9 percent coupon rate and is priced to have a 8.2 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bond’s price change? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131819241

Questions Cloud

What is the remaining margin in the account : Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $35 per share. What is the remaining margin in the account?

What are some limitations of internal controls : What is separation of duties? List internal control procedures related to e-commerce. What are some limitations of internal controls?

How do businesses control cash receipts by mail : How do businesses control cash receipts by mail? What are the steps taken to ensure control over purchases and payments by check?

Associated with real estate investment and development : What are potential profit centers that are associated with real estate investment and development?

How much would the bond price change : If interest rates surprisingly increase by 0.5 percent, by how much would the bond’s price change?

What is a bank reconciliation : List some examples of timing differences, and for each difference, determine if it would affect the book side of the reconciliation or the bank side.

What does the cash ratio help determine : Why is it necessary to record journal entries after the bank reconciliation has been prepared? Which side of the bank reconciliation requires journal entries?

What is the minimum amount of equity : What is the minimum amount of equity that? he'll have to put up in this? transaction?

Which alternative is worth more in present value terms : Which alternative is worth more in present value terms and by how much?

User Account

All Pages