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Author Question: BondCoupon RateMaturityPriceYieldT-Note Strip01070.693.5%T-Bill0196.623.5%8-year ... (Read 51 times)

TFauchery

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BondCoupon RateMaturityPriceYield
T-Note Strip01070.693.5%
T-Bill0196.623.5%
8-year T-Note5%8110.313.5%
7-year T-Note6.5%7118.343.5%
Each bond in the table has a face value of $100. The coupon bonds pay annual coupons, and the next coupon is due in one year. Assume that the yield curve is flat and all yields are currently 3.5%. If interest rates are forecast to rise to 4% from 3.5%, then what is the percentage change in price for the bond whose price changes the most?
◦ -4.4%
◦ -3.5%
◦ -2.5%
◦ -1.5%
◦ -0.5%


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Marked as best answer by TFauchery on Apr 25, 2021

cegalasso

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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TFauchery

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


covalentbond

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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