How much would the bond price change

Assignment Help Finance Basics
Reference no: EM132783129

A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually with a 10 percent coupon rate and is priced to have a 9 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: EM132783129

Questions Cloud

Expected return on the portfolio : What is the expected return on the portfolio if the portfolio beta is 1.05?
About working with technology projects throughout the state : As a newly assigned project manager for the Ohio Department of Human Services, you are excited about working with technology projects throughout the state.
How does data become knowledge and finally wisdom : How does data become knowledge and finally wisdom? Explain the relationship between knowledge acquisition, knowledge processing, knowledge generation.
Find jensen alpha of stock : A stock has a return of 12.9 percent and a beta of 1.27. The market return is 12.6 percent and the risk-free rate is 4.13 percent. What's the Jensen alpha of th
How much would the bond price change : A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually with a 10 percent coupon rate and is priced
Discuss what factors contribute to the yearly incidence : Discuss what factors contribute to the yearly incidence and mortality rates of various cancers in Americans. Explain how the American Cancer Society (ACS).
Loan application for the recommended alternative : 2.) Use your analysis to justify the bank loan application for the recommended alternative.
Compute the depreciation expense for the first full year : Sheffield Corp. constructed a building at a cost of $14650000. Compute the depreciation expense for the first full year using the straight-line method
Essential systems necessary to facilitate continuous : Describe the essential systems necessary to facilitate continuous change without compromising quality or causing burnout among employees.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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