Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. there is a 9%, 23 year note bond which has a ytm o

There is a 9%, 23 year note bond which has a ytm of 9%. The...

60.1K

Verified Solution

Question

Finance

There is a 9%, 23 year note bond which has a ytm of 9%. The ytmalters by one percent down. By how much does the price alter? Ifthe ytm drops by 2%, by how much does the price change? What is theexact percentage change of the bond in the 2 cases?

Answer & Explanation Solved by verified expert
4.0 Ratings (397 Votes)
Because bonds are priced at par that means original price 1000 and YTM coupon rate 9 Change in YTM 1 Bond K Nx2 Bond Price Coupon1    See Answer
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

Transcribed Image Text

There is a 9%, 23 year note bond which has a ytm of 9%. The ytmalters by one percent down. By how much does the price alter? Ifthe ytm drops by 2%, by how much does the price change? What is theexact percentage change of the bond in the 2 cases?

Other questions asked by students

Q

True or false If two events A and B are independent events with P A...

Statistics
Q

Explain the Enzyme-Based sensors for the assay of glucose. Discuss the reaction mechanism too. Explain in...

Physics
Q

Identify the eight hidden agendas in communication and discuss the purpose of each.

Psychology
Q

During high-intensity exercise such as sprinting or lifting a very heavy weight, energy is provided to...

Physics
Q

It was a very dark night as Jane started to walk to her dorm from the...

Psychology
Q

A particle having charge q and mass mis projected with velocity v 21 3j in...

Physics
Q

You run a nail salon Fixed monthly cost is 5 419 00 for rent and...

Basic Math
Q

For each hyperbola below, find its center, vertices, co-vertices, foci, and asymptotes.a.(x?1)/9 -(y+2) /16= 1Coordinates...

Basic Math
Q

If an investee reported other comprehensive income on its own financial statements, how would this...

Accounting
Q

Cash Flows at Warf Computers, Inc. Warf Computers, Inc., was founded 15 years ago by...

Accounting
Q

The Kraft Heinz Company (KHC) The competitors' performance opens an opportunity to gauge Heinz WACC...

Finance
Q

QUESTION 1 20 points (A). What are the reasons that the value of a dollar...

Finance