This topic contains a solution. Click here to go to the answer

Author Question: Consider a 3-year bond maturing Sept 30, 2019. Assume that you bought the bond on Sept 30, 2016, at ... (Read 65 times)

maegan_martin

  • Hero Member
  • *****
  • Posts: 532
Consider a 3-year bond maturing Sept 30, 2019. Assume that you bought the bond on Sept 30, 2016, at a price of $1,074.56 ($1,000 face value). If rates stay as they are for the rest of the year, what percentage change in price do you expect over the next year based on your estimate of the bond price after the second coupon is paid (Sept 30, 2017)? Assume that the bond pays semi-annual coupons (4.5% annual coupon rate) and has a bond equivalent yield of 1.93% per annum.
◦ -2.3%
◦ 0.88%
◦ 0.50%
◦ 0.65%
◦ 0.76%


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by maegan_martin on Apr 25, 2021

mirabriestensky

  • Sr. Member
  • ****
  • Posts: 325
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.
Answer Preview
Only 35% of students answer this correctly




maegan_martin

  • Member
  • Posts: 532
Reply 2 on: Apr 25, 2021
Excellent


patma1981

  • Member
  • Posts: 292
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

For a complete list of videos, visit our video library