What is the percentage change in the bond price

Assignment Help Financial Management

Reference no: EM131361180

A 9-year bond has a yield of 13.5% and a duration of 8.63 years. If the BOND'S yield changes by 60 basis points, what is the percentage change in the bond’s price? Is this an increase or decrease?

Reference no: EM131361180

Questions Cloud

Global business or an organization of choice : Use the Internet or Strayer Library to research a global business or an organization of your choice. Next, analyze the overall effect of global competition on the business or the organization that you researched. Suggest one strategy that the busi..

How does price of these bonds today compare to issue price : One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5% and pay interest annually. Today, the market rate of interest on these bonds is 7.2%. How does the price of these bonds today compare to the issue price.

Fundamental differences between special-cause variation : Compare and contrast the fundamental differences between special-cause variation and common-cause variation. Provide one (1) business process example of each variation to support your response.

Discuss about the application of tort law application : Do you think the application of tort law application to mental health is different in the us when compared to Bangladesh?

What is the percentage change in the bond price : A 9-year bond has a yield of 13.5% and a duration of 8.63 years. If the BOND'S yield changes by 60 basis points, what is the percentage change in the bond’s price? Is this an increase or decrease?

Result of the contingent survey : A poll done for Newsweek found that 13% of Americans have seen or sensed the presence of an angel. A contingent doubts that the percent is really that high. It conducts its own survey. Out of 100 Americans surveyed, only 3 had seen or sensed the p..

Which alternative should ski boards inc choose : Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) Refurbish the old equipment at a cost of $800, Which alternative should Ski Boards, Inc., choose if it thinks it can sell more than 3..

What is the percentage change in price for zero coupon bond : What is the percentage change in price for a zero coupon bond if the yield changes from 6.5?% to 8?%? The bond has a face value of ?$1,000 and it matures in 19 years. Use the price determined from the first? yield, 6.5?%, as the base in the percentag..

In which areas do you see similarities to our approach : Box 5.1 in your textbook, "Chinese Negotiation Frames", identifies five concepts that someone attempting to negotiate in China should recognize. In which areas do you see similarities to our approach to framing?

User Account

All Pages