Find the resulting percentage change in the bond price

Assignment Help Financial Management
Reference no: EM131938740

You have a four-year bond with a coupon rate CR = 6% and a face value of $1,000. The bond makes annual coupon payments and its yield to maturity is 2% p.a. If the bond's yield to maturity increases by 1% (i.e., by 100 basis points), find the resulting percentage change in the bond's price. For example, if the bond's price changes from $1,000 to $900, then the percentage change in price would be 100x(900 - 1,000)/1,000 = -10.00%. Give the answer as a percent with two decimals, e.g., -7.12%.

Reference no: EM131938740

Questions Cloud

What is the duration of this stock : You have a stock that is expected to pay a $1.3 dividend one year from now. what is the duration of this stock?
The bond makes annual coupon payments : The bond makes annual coupon payments and its yield to maturity is 19% p.a.
State the definition of the 40th decile : (Deciles.) The 10th, 20th, 30th, 40th, 50th, 60th, 70th, 80th, 90th, and 100th percentiles for X are called its deciles.
Particular variety of moss using the data : Approximate the 50th percentile for X, the percentage ash content for a particular variety of moss using the data.
Find the resulting percentage change in the bond price : You have a four-year bond with a coupon rate CR = 6% and a face value of $1,000. find the resulting percentage change in the bond price
Approximate the mean-variance and standard deviation : Use the data of Exercise 11 to approximate the mean, variance, and standard deviation of the random variable X, the percentage ash content of a particular
The root causes of the greek predicaments : The root causes of the Greek predicaments. the costs and benefits of staying in the euro-zone for Greece.
Who are the stakeholders besides the obvious : Find an article from a trusted media source published within the last six months illustrating an ethical issue regarding marketing products, services or ideas.
Produce a plot of fertility rate versus age at first marriag : 161.221: Applied Linear Models Assignment. Produce a plot of fertility rate versus age at first marriage. Comment on any features you notice

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd