Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you find a bond with 29 years until maturity that

You find a bond with 29 years until maturity that has a coupon rate of...

80.2K

Verified Solution

Question

Finance

image

You find a bond with 29 years until maturity that has a coupon rate of 7.5 percent and a yield to maturity of 7.2 percent. Suppose the yield to maturity on the bond increases by 25 percent. a. What is the new price of the bond using duration and using the bond pricing formula? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Now suppose the original yield to maturity is increased by 1 percent. What is the new price of the bond? (Do not round intermediate calculations. Round your answers 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

Medical Sciences
1.2K views

Given these test results Weber - louder in right ear Rinne - Negative for right ear, and...

Electrical Engineering
1.2K views

The code below takes in values from LDR but only one LED is lit. The other...

Biology
1.2K views

Which of the following pairs represent the planning to operation time for Vogtle 3 and...

Physics
1.2K views

In a transverse progressive wave of amplitude A the maximum particle velocity is four times...

Geometry
1.2K views

9 A soccer field is a rectangle 90 meters wide and 120 meters long The...

Geometry
1.2K views

Pizzas are measured by diameter.Determine the area of a 6-inch personal pizza. Round your answer...

Basic Math
1.2K views

A 7 500 CD is purchased through a local bank that pays 3 60 interest...

Statistics
1.2K views

Bernard ran an experiment to test optimum power and time settings for microwave popcom His...

Calculus
1.2K views

Show that the given differential equation is not exact and solve it by finding an...

Calculus
1.2K views

u 41 v 21 8 a 4u Type your answer in terms of I and...

Accounting
1.2K views

BE3- 6 Bouche Corp. owns a warehouse on November 1. it rented storage space to...

Finance
1.2K views

Based on our discussion of CAPM, the return required by investors on a stock is:...