MLK Bank has an asset portfolio that consists of $80 million of 30-year, 8 percent...
70.2K
Verified Solution
Question
Finance
MLK Bank has an asset portfolio that consists of $80 million of 30-year, 8 percent annual coupon, $1,000 bonds that sell at par 8-1. What will be the bonds new prices if market yields change immediately by +010 percent? a-2. What will be the new prices if market yields change immediately by + 2.00 percent? b-1. The duration of these bonds is 12.1584 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. Required Al Required A2 Required B1 Required B2 The duration of these bonds is 17.1584 years. What are the predicted bond prices in each of the four cases using the duration rule? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. (0.9., 32.16) Bonds' New Price At + 0.10% At -0,10%

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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.