Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. there is a 9%, 23 year note bond which has a ytm o

There is a 9%, 23 year note bond which has a ytm of 9%. The...

60.1K

Verified Solution

Question

Finance

There is a 9%, 23 year note bond which has a ytm of 9%. The ytmalters by one percent down. By how much does the price alter? Ifthe ytm drops by 2%, by how much does the price change? What is theexact percentage change of the bond in the 2 cases?

Answer & Explanation Solved by verified expert
4.0 Ratings (397 Votes)
Because bonds are priced at par that means original price 1000 and YTM coupon rate 9 Change in YTM 1 Bond K Nx2 Bond Price Coupon1    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

There is a 9%, 23 year note bond which has a ytm of 9%. The ytmalters by one percent down. By how much does the price alter? Ifthe ytm drops by 2%, by how much does the price change? What is theexact percentage change of the bond in the 2 cases?

Other questions asked by students

Q

The following data were randomly drawn from an approximately normal population. 37, 40, 43, 45, 49 Based on...

Statistics
Q

Menthol is a crystalline substance with a peppermint taste and odor. When 1.19 g of menthol...

Chemistry
Q

1- Brief discussion of column chromatographic separation (solvent polarity, elution of compounds etc.) 2- Relationship between polarity...

Chemistry
Q

What are your thoughts about encouraging the development of achievement in children and how will you...

Psychology
Q

The following information is presented for the Worldwide Auditor's Association. For the year ended November 30,...

Accounting
Q

Q22 Two resistors have different temperature coefficient of resistance a 1 and a 2 What...

Physics
Q

Question 22 2 points A square based pyramid is shown Determine the total surface area...

Geometry
Q

How is Cost-Volume-Pricing analysis useful in making pricing and product mix decisions? Why is it...

Accounting
Q

Muckenthaler Company sells product 2005WSC for $30 per unit. The cost of one unit of...

Accounting
Q

A business issued a 45-day note for $90,000 to a creditor on account. The note...

Accounting
Q

If you have the following items YAKIN Revenues Administrative expense UNIVER 10,240 12.400...

Finance
Q

A $1,000 face value corporate bond with a 9.8 percent coupon (paid semiannually) has 5...

Finance