What would be an estimate of the percent price change

Assignment Help Financial Management

Reference no: EM131528777

A 7.4% coupon bearing bond that pays interest semi-annually has a yield to maturity of 4.8% per year. If the bond has a convexity of 169 and the market yield increases 95 basis points, what would be an estimate of the percent price change due to convexity alone? (Answer to the nearest hundredth of a percent, i.e., 1.23 without using a % sign).

Reference no: EM131528777

Questions Cloud

What would be an appropriate estimate of the stock price : What would be an appropriate estimate of the stock price to be today?

What other past information should you collect : Based on this information, what other past information should you collect so that you can be certain that you are complying with the policy

Percent price change due to both duration and convexity : calculate an estimate of the percent price change due to both duration and convexity.

Discuss the case of m m hammer and s k sarin : M. M. Hammer and S. K. Sarin. "Efficient Monitoring of Database Assertions." Proc. 1978 ACM SIGMOD International Conference on Management of Data, Austin.

What would be an estimate of the percent price change : what would be an estimate of the percent price change due to convexity alone?

Describe the significance of encourage the heart : Finally, create a summary message to describe the significance of "Encourage the Heart" as it relates to your view of leadership

Tell me what the author is trying to communicate : Give a brief summary of each reading,addressing each author's key ideas and concepts.Tell me what the author is trying to communicate.What's the main takeaway?

Calculate an estimate of the percent price change : calculate an estimate of the percent price change due to duration alone.

Calculate estimate of percent price change due to duration : calculate an estimate of the percent price change due to duration alone.

User Account

All Pages