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: Flex 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

Biology
1.2K views

If fine glass needles are used to manipulate a chromosome inside a living cell during early...

Physics
1.2K views

2 An equilateral prism of mass m resets on a rough horizontal surface with coefficient...

Geometry
1.2K views

12 4 points In AABC m CBA 90 m CAB 60 and AB 3 3...

Statistics
1.2K views

A traffic cop was stopping every 5th car to check for insurance and license What...

Algebra
1.2K views

Neatly show all of your work as you find an expression for the exact value...

Algebra
1.2K views

19 Suppose that R is a ring and let z E R If there exists...

Accounting
1.2K views

Manitoba Exporters Inc. (MEI) sells Inuit carvings...

Accounting
1.2K views

Describe the similarities, and differences, between interest rate futures and bond futures. What are the...

Accounting
1.2K views

2. Breaches of contract on an international basis are heard by the UN's Court of...

Accounting
1.2K views

Indicate thecorrectstatement regarding an emergency fund.A.The fund has to consist of liquid assets.B.An emergency fund...

Accounting
1.2K views

the income and expenses of a corporation for federal income tax purposes are referred to...

Finance
1.2K views

Please include steps with explanations and formulas. 4) There are two underlying assets in...