Evaluate the percentage change in the bond price

Assignment Help Finance Basics

Reference no: EM132018706

Question: A nine-year bond has a yield of 10% and a duration of 7.194 years. If the bond's yield changes by 50 basis points, what is the percentage change in the bond's price? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.) The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132018706

Questions Cloud

What is the net present value of buying the part instead : what is the net present value of buying the part instead of making it?

Compute the manufacturing overhead rate for the year : For the year, $349,663 of overhead costs are incurred and 132,600 hours are used. Compute the manufacturing overhead rate for the year

What is the amount of nickel total assets : What is the amount of Nickel's total assets at the end of 2011? What is the amount of Nickel's retained earnings at the end of 2011?

What is the common and scientific name of your organisms : Where are the organisms originally found? How did this species become invasive? What type and how much damage does the species cause?

Evaluate the percentage change in the bond price : A nine-year bond has a yield of 10% and a duration of 7.194 years. If the bond's yield changes by 50 basis points, what is the percentage change in the bond's.

Prepare the journal entries for both the lessee and lessor : Prepare the journal entries for both the lessee and lessor to record interest expense (revenue) at December 31, 2011

Discuss the accounting break-even point : Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $10.00 per unit, and the variable labor cost is $5.50 per unit.

What is the project net present value : The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. what is the project's net present value?

Use for debt when calculating the cost of capital : Liu Industrial Machines issued 149,000 zero coupon bonds six years ago. what weight should it use for debt when calculating the cost of capital?

User Account

All Pages