What is percentage change in the price of these bonds

Assignment Help Financial Management

Reference no: EM131304146

Both Bond Bill and Bond Ted have 9.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 22 years to maturity. Both bonds have a par value of 1,000. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

Percent in change for?

Bond Bill -

Bond ted -

If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of these bonds?

Percent in change for?

Bond Bill -

Bond ted -

Reference no: EM131304146

Questions Cloud

How do marketers attempt to shape consumers learning : What is selective exposure? Why do people engage in it?- How do marketers attempt to shape consumers' learning?

What are your thoughts on performance-based pay : What are your thoughts on performance-based pay? Do you feel that employees should be compensated solely based on their performance? Why or why not?

List three aspects of us history since 1865 : Describe the two (2) international events involving the US military from the past five (5) years you investigated that can be traced back to a foreign policy created after the Civil War.List three (3) aspects of US history since 1865 that have led..

How do roles affect a persons buying behavior : How do roles affect a person's buying behavior? Provide examples.- What are family influences, and how do they affect buying behavior?

What is percentage change in the price of these bonds : Both Bond Bill and Bond Ted have 9.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 22 years to maturity. Both bonds have a par value of 1,000. If interest rates suddenl..

Prepare a html page using html tags : All the pages/code must include: detailed comments explaining what you have done for anyone to follow, a header and logo and a footer with copyright, date, and email information

Predict what the company might do to improve its ability : With the same two forces in mind, predict what the company might do to improve its ability to address these forces in the near future.

How an opinion leader influence buying decision process : How does an opinion leader influence the buying decision process of reference group members?- In what ways does social class affect a person's purchase decisions?

What does greenspan mean by debt leverage : Does Greenspan's analysis provide insight into why the Fed during his tenure may have been reluctant to take action against asset bubbles?

User Account

All Pages