This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%. The market ... (Read 19 times)

olivia_rose

  • Full Member
  • ***
  • Posts: 132
on: Mar 29, 2022

Question 1

A bond has a YTM of 6.75%, a modified duration of 14.05 years, a duration of 15 years and a 20 year maturity. By what percentage will the bond's price change if market interest rates decrease by 0.75%?
◦ -0.750 percent
◦ +0.750 percent
◦ +10.53 percent
◦ -10.53 percent

Question 2

A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%.  The market interest rate has increased by 0.47%. The modified duration is
◦ 9.4 years.
◦ 14.1 years.
◦ 18.29 years.
◦ 27.44 years.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by olivia_rose on Mar 29, 2022

lactosetheintolerant

  • Full Member
  • ***
  • Posts: 149
Reply #1 on: Mar 29, 2022
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 25% of students answer this correctly


olivia_rose

  • Member
  • Posts: 132
Reply 2 on: Mar 29, 2022
Wow, this really help

Joy Chen

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

During drought years on the Galapagos, small, easily eaten seeds become rare, le During drought years on the Galapagos, small, easily eaten seeds become rare, le
Hong Kong is a strange situation. A British colony since 1842, it was handed back to China in 1997 a Hong Kong is a strange situation. A British colony since 1842, it was handed back to China in 1997 a
Infant: 4 weeks to 1 year. Infant: 4 weeks to 1 year.
Hydroelectric power: 2013 Global Market Hydroelectric power: 2013 Global Market
Foods for Baby’s First Year Foods for Baby’s First Year
Ionic Bond: Sodium Chloride Ionic Bond: Sodium Chloride
Video: Sex-Linked Traits! How are eye colors inherited in fruit flies?

For a complete list of videos, visit our video library