Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an 8% coupon bond with annual payments (face value

An 8% coupon bond with annual payments (face value = 10,000) currently trades at par....

70.2K

Verified Solution

Question

Finance

An 8% coupon bond with annual payments (face value = 10,000) currently trades at par. Its annual Macaulay duration is 5.43 years.

Suppose yield goes down by 0.36%. Calculate the approximate dollar change in price using duration. Assume annual compounding. Round your answer to 2 decimal places.

Answer & Explanation Solved by verified expert
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

Other questions asked by students

Physics
1.2K views

If the scattering intensity of a liquid is 8 units at a wavelength of 500...

Biology
1.2K views

Naked mole rats were recently discovered to be able to survive 18 minutes of an anoxic...

Biology
1.2K views

What is the role of the government in a capitalistic society To manage businesses and...

Physics
1.2K views

Adiabatic Process Constant Q 12 The initial volume of 0 18 kg of certain gas...

Physics
1.2K views

In the given circuit diagram switch was connected to position 1 for long time At...

Geometry
1.2K views

In the diagram below quadrilateral PQRS is inscribed in circle T Find the measure of...

Algebra
1.2K views

Find the arc length of the graph of the function over the indicated interval Round...

Algebra
1.2K views

Evaluate the expression with the given replacement values.2xy when x=3 and y=6The value of the...

Accounting
1.2K views

The rollowing data are taken Trom the rinancial statements or Rainsberger Company 2018 $500,000 $515,000...

Accounting
1.2K views

Using the following information: a. The bank statement balance is $2,925. b....

Accounting
1.2K views

Accounting
1.2K views

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment...