Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. a bond currently sells for $1,200, which gives

1. A bond currently sells for $1,200, which gives it a yield to maturity of...

80.2K

Verified Solution

Question

Accounting

1. A bond currently sells for $1,200, which gives it a yield to maturity of 8%. Suppose that if the yield increases by 25 basis points, the price of the bond falls to $1,155. What is the modified duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

2. A nine-year bond paying coupons annually has a yield of 10% and a duration of 7.213 years. If the bond's yield changes by 60 basis points, what is the percentage change in the bond's price? (Input the value as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

An astronomer hosts a stargazing party for $775. If the group tips the astronomer 15%,...

Basic Math
Q

Perform the indicated operation a a 3a 12a 3 2 4 10

Algebra
Q

Without graphing determine the number of solutions of the system of equations State whether the...

Algebra
Q

Adventure Inc. issued $307,000 of 7 percent, 10-year bonds on July 1, 2019. Interest payments...

Accounting
Q

Abbey Co. sold merchandise to Gomez Co. on account, $34,000, terms 2/15, n/45. The cost...

Accounting
Q

In this final excel assignment you will develop a bar inventory sheet for your restaurant....

Accounting
Q

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Cash Accounts receivable Teaching supplies Prepaid insurance...

Accounting
Q

What is the yearly interest payment on an interest only loan if the loan is...

Accounting
Q

Sentra Limited is a public company whose headquarters is in Johannesburg, South Africa. It is...

Accounting
Q

Laker Company reported the following January purchases and sales data for its only product Date...

Accounting
Q

Nicholas Ram Corporation have a $1,500,000 "bond issue" dated March 1, 2016 due in 15...

Accounting
Q

A store is offering a 15% discount on all merchandise. By what single number would...

Finance