What is the duration-based change in price

Assignment Help Finance Basics

Reference no: EM133204771

Assignment - Finance Calculation Questions - A bond yields 5%, has a semi- annual coupon of 9%, a term of 10 years.

1. What is the duration?

2. What is the convexity?

3. What is the duration-based change in price if the yield increases by 60 basis points?

4. What is the actual (calculator) change in price if the yield increases by 60 basis points?

5. What is the difference between #3 and #4? What do you attribute that difference?

6. If the bond is callable in 2 years at 101, what is the yield to call?

7. What is negative convexity?

8. What is positive convexity?

9. What is price compression?

10. What does this mean: "In a callable bond, as the yield decreases, the price increases but at a decreasing rate."?

Reference no: EM133204771

Questions Cloud

Discuss characteristics of an effective performance : Discuss characteristics of an effective performance appraisal form - In managing employee performance management activities, analyze TWO (2) activities

What would you expect patients psa level to be after surgery : Why are patients with BPH at increased risk for urinary tract infections? What would you expect the patient's PSA level to be after surgery?

Determine the purpose of using your own coaches : Determine the purpose of using your own coaches (managers, supervisors, etc) from the Coca Cola company, or 'hiring' them from external sources

Explain bass factors associated transformational leadership : Identify and explain four of Bass' factors associated with transformational leadership. Give examples that illustrate the use of these factors.

What is the duration-based change in price : Finance Calculation Questions - What is the duration-based change in price if the yield increases by 60 basis points

Suggest to khadijah by explaining to her the four : Explain decision criteria to be considered by a manager in the process of promoting an employee - type of exercise used in the given scenario

Ways to limit supply chain management problems : Provide at least 3 recommendations, to John and Michael, describing ways to limit supply chain management problems/symptoms.

Explaining subordinate characteristics : The Path-goal leadership model is based on which motivation theory? (2) Spot and identity one mistake the narrator made in explaining subordinate characteristic

Developing pro forma financial statements and cash flow : One Year Sales Forecast Discussion - Developing pro forma financial statements and cash flow forecasts depends heavily upon sales forecasts

User Account

All Pages