What is the percentage change in the price

Assignment Help Financial Management

Reference no: EM13730867

Both Bond Sam and Bond Dave have 8 percent coupons, make semi-annual payments, and are priced at par value. Bond Sam has three years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave % If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? (Round your answers to 2 decimal places. (e.g., 32.16)) Percentage change in price of Bond Sam % Percentage change in price of Bond Dave %

Reference no: EM13730867

Questions Cloud

Competitive position within the industry : 1. Perform a SWOT Analysis (Strengths, Weaknesses, Opportunity, and Threats) on your chosen organization. 2. Provide an analysis of these results in light of the problem or issue under study.

Purchase of the investment and dividends received : Banks Corporation purchased 400 shares of Herman Inc. common stock as an available-for-sale investment for $13,200. During the year, Herman paid a cash dividend of $3.25 per share. At year-end, Herman stock was selling for $34.50 per share.

Stock has returns-probability range for any one given year : A stock has returns of 3 percent, 17 percent, -25 percent, and 15 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?

Develop an annotated bibliography : Develop an annotated bibliography of the sources you gave on Sexual Behavior in the Work Place

What is the percentage change in the price : Both Bond Sam and Bond Dave have 8 percent coupons, make semi-annual payments, and are priced at par value. Bond Sam has three years to maturity, whereas Bond Dave has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the pe..

Value of one share to investor who requires rate of return : Mc Donalds corp. preferred stock pays an annual dividend of $5 per share. Calculate the value of one share to an investor who requires a rate of return of : Calculate the yield of the Mc Donalds corp preferred stock of problem 13 if its market price ..

Translate into graph : 2. The purpose of this exercise is to acquaint you with some simple mathematical relationships and how they translate into graph. Economic models can come under the form of equation such as Y=F(L), Y is depandent variable, L is indepandent variable, ..

Challenges to communicating with groups : In a 250-300 word response, analyze how communication in groups differs from individual communication. Are there unique challenges to communicating with groups? Provide examples. Use at least one resource to support your key points.

What is the common economic issue or policy debate : What is the common economic issue or policy debate these three articles are addressing? Is this still relevant today and are the authors making policy recommendations, or criticizing some policy ideas? What, specifically?

User Account

All Pages