What percentage will the bonds price change

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Reference no: EM131567405

1. A bond has a yield to maturity of 4.5%, a duration of 14 years, and a 20 year maturity. By what percentage will the bond's price change if market interest rates decrease by 0.5%?

+7.66 percent

-6.70 percent

+6.70 percent

-7.66 percent

2. Sandy purchased 10 shares of a stock 9 months ago for $22 a share, received a $1 dividend per share during this time period, and sold the 10 shares of the stock today for $26 per share. Sandy has a marginal tax rate of 28%. Both long-term capital gains and dividend income is taxed at 15%. What is Sandy's after-tax holding period return?

17.72%

16.95%

18.28%

19.32%

Reference no: EM131567405

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