User Account

All Pages

Interest rate sensitivity

Assignment Help Finance Basics
Reference no: EM131434785

Interest rate sensitivity

An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 5%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Round your answers to the nearest cent or to two decimal places. Enter all amounts as positive numbers.

Price @ 8%

Price @ 5%

Percentage Change

10-year, 10% annual coupon

$   

10-year zero

$  

5-year zero

$   

30-year zero


$100 perpetuity


Reference no: EM131434785

Questions Cloud

What are the opportunities for advancement : Prepare for the interview. Write 5-6 questions in advance before meeting with the interviewee. What is your career path? What education and skills are required for his/her position? What are the opportunities for advancement?
How will diagnosis occur in sick patients in the laboratory : You will assume the role of Dr. Hero, the Centers for Disease Control's emerging pathogens program director. You have been contacted by the CDC director, the World Health Organization director, and the President of the United States to get a grasp..
How effective companies at applying ids for specific purpose : One theme in this course is effective use of IDS tools to defend against specific types of attacks and misuse. How effective are companies and other organizations at applying IDS for specific purposes?
What would net income and return on assets : It is estimated that Database can generate $1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets (investment) be for the year?
Interest rate sensitivity : An investor purchased the following 5 bonds. Each bond had a par value of $1,000 and an 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 5%.
Expected net winnings for single ticket : The chance of winning a lottery game is 1 in approximately 26 million. Suppose you buy a $1 lottery ticket in anticipation of winning the $4 million grand prize. Calculate your expected net winnings for this single ticket. Interpret the result.
What have been the issues with snmp : SNMP initially appeared in 1988, but it did not receive widespread adoption. What have been the issues with SNMP, and have they been addressed? How widely used is SNMP now? Find some examples of tools that use SNMP.
How does london fit into the lens of a multicultural city : You must discuss London as a Multicultural City. How does London fit into the lens of a multicultural city? How does thinking about London using the lens of a "multicultural city" add complexity to the understanding of it?  How is this complexity d..
Compare and contrast the unitary systems and federal systems : Unitary systems concentrate the power within the central government and little or no authority is granted to the component areas. In contrast, federal systems allow first-order civil divisions to have some autonomy, while the central government ma..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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