Duration approximate percentage change in price of bond

Assignment Help Financial Management

Reference no: EM131567271

Consider a U.S. 30-year corporate bond with the following characteristics:

Settlement date: May 5, 2017

Maturity date: March 15, 2047

Coupon: 3.25%

Yield: 4.56%

Frequency: ?

Basis: actual / actual

If the yield decreases by 15 basis points, what is the duration approximate percentage change in the price of the bond? Make sure to show your work. (Fruqency not given)

Reference no: EM131567271

Questions Cloud

How much material would you need to make the hat : How much material would you need to make the hat? Your answer should be in square inches. Calculate the surface area of the canned good.

Describe the process that your selected country : Describe the process that your selected country went through to adopt IFRS, such as how long it took for the country to fully adopt IFRS

Denote the optimal number of units produced : Suppose that the firm is paid a positive price p for each unit it produces, and that the positive prices it pays per unit of capital, labour.

What is the present value of all of these cash flows : What is the present value of all of these cash flows if the annual interest rate is 6%?

Duration approximate percentage change in price of bond : If the yield decreases by 15 basis points, what is the duration approximate percentage change in the price of the bond?

Socially beneficial way and ensure progress : "Free markets allocate economic goods in the most socially beneficial way and ensure progress."To what extent is this statement true?

How much was actually spent on labor for the week : Calculate the time variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number

What do you think about assisted suicide : What do you think about assisted suicide. Do you think it should be legal. If you do think it should be legal under what circumstances

Find the optimal daily production levelhttp://www.transtutor : A firm produces two different kinds A and B of a commodity. The daily cost of producing Q1 units of A and Q2 units of B.

User Account

All Pages