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A bondholder owns 10-year government bonds with a $1 million face value and a 4...

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Accounting

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A bondholder owns 10-year government bonds with a $1 million face value and a 4 percent coupon that is paid annually. The bonds are currently priced at $1,269,181 with a yield of 1.137 percent. The bonds have a duration of 8.59 years. If interest rates are projected to increase by 50 basis points, how much will the bondholder gain or lose? Select one: O a. gain $4,129 O b. gain $53,898 c. lose $53,898 O d. none of the options O e. lose $4,129 You obtain a $250,000, 15-year fixed-rate mortgage. The annual interest rate is 3.25 percent. What is the total monthly payment (to the nearest dollar)? Select one: O a. $2,347 O b. $2,521 O c. $1,927 O d. $1,757 O e. $2,172

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