What is predicted to be the bond new price

Assignment Help Finance Basics
Reference no: EM133068291

A bond has a duration of 5.8, a yield-to-maturity of 4.43%, and convexity of 96.47. If the current bond's price is $1,126.06 what is predicted to be the bond's new price if interest rates suddenly jump upwards by 1.13%? State your answer as a dollar amount with two decimal places.

Reference no: EM133068291

Questions Cloud

What is predicted to be the bond new price : A bond has a duration of 5.8, a yield-to-maturity of 4.43%, and convexity of 96.47. If the current bond's price is $1,126.06 what is predicted to be the bond's
Power and leadership : We learned about the differences in leadership, emotional intelligence, and power in each individual.
What is the present value of policy : You are reviewing two retirement policies as described below. Assume that all payments are expected to be received at the end of the year referenced.
How will the tax authority decision affect after-tax cost : How will the tax authority's decision affect the after-tax cost of the kiln? The tax rate is 25%, and the opportunity cost of capital is 4%
What is predicted to be the bond new price : A bond has a duration of 5.8, a yield-to-maturity of 4.43%, and convexity of 96.47. If the current bond's price is $1,126.06 what is predicted to be the bond's
Address social functioning and to promote the well-being : Address social functioning and to promote the well-being of individuals, families, groups, organizations, and communities
Create inherent instability in the economy : Explain Minsky's theory for how the banking and finance industry will create inherent instability in the economy? That is, explain why stability creates instabi
What is the monthly payment for a one-year loan : She compares the monthly payments for an 8.1% loan for three different periods of time. What is the monthly payment for a one-year loan
Expectation of increasing interest rates : Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Su

Reviews

Write a Review

Finance Basics Questions & Answers

  What is marketing discipline

What is marketing discipline? What is most people's perception of marketing discipline?

  Example of a primary market transaction

1. The goal of the firm should be 2) An example of a primary market transaction is

  What is the equivalent uniform amount per month

According to the Government Accountability Office (GAO), if the U.S.Postal Service does not change its business model, it will lose $48million next month

  What is your position delta

You own 1,000 shares of XYZ and have purchased ten protective put contracts. The puts have a delta of -0.317.

  Addresses the political and business risks

Prepare a paper that addresses the political and business risks and the rewards associated with global business operations. Include a discussion of the impact of monetary exchange rates on corporate profits (CO 9).

  Process of self-examination

1. As a process of self-examination during her senior year of college, Casey decides to develop a SWOT analysis of her prospects relative to getting a job. Casey realizes that she has a personal characteristic that suggests she is not comfortable ..

  Difference between merger and consolidation

What is the difference between a merger and consolidation? List and explain the motives of mergers and consolidations.

  What is the value of the winning lottery ticket in present

a. What is the value of the winning lottery ticket in present value if the discount rate is 6%, and it is an ordinary annuity? b. What is the value of the winning lottery ticket in present value if the discount rate is 6%, and it is an annuity due? c..

  What is the difference between the two firms roes

However, firm A has a debt-to-assets ratio of 70% and pays 12% interest on its debt, while Firm B has a 20% debt ratio and pays only 8% interest on its debt. What is the difference between the two firms' ROEs?

  What is the size of the final payment

If the first payment is due at the date of the agreement, what is the size of the final payment?

  Initial price of a swaption that matures at time

Compute the initial price of a swaption that matures at time t=5 and has a strike of 0. The underlying swap is the same swap as described in the previous question with a notional of 1 million.

  Calculate the mean u

a) Calculate the mean u b) Find the cumulative distribution function of X.

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