What is the bond price-sloth enterprises

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1) Sloth Enterprises' bonds have a 19-year maturity, a 6.7% coupon, and a par value of $1,000. The going interest rate (rd) is 10.27%. Assuming semiannual compounding, what is the bond's price?

2) Jerome owns a bond with a Macaulay duration of 9 and a current yield to maturity of 13.49 percent. What is the approximate percentage change in the price of his bond be if interest rates change by 13 basis points? Assume semiannual compounding.

3) A 9.2% coupon bond with 17 years to maturity and a par value of $1,000 is currently selling for $835.89. What is the bond's current yield?

4)The potential to invest a coupon payment at a rate that is lower than the bond's yield-to-maturity is known as __________.

A) maturity risk
B) current yield risk
C) reinvestment rate risk
D) payment risk
E) current rate risk

Reference no: EM132813663

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