What is the significance of delta to the bopm

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1. What is the yield to maturity for an 8%, $1,000 semi-annual bond with a maturity of 30 years if the bond is currently selling for 114.04.

2. What is the price of a $1,000 face value bond with a 10% semi-annual coupon rate if the bond matures in 5 years and requires a return of 12%?

3. What is the significance of delta to the BOPM? How does it relate to the concept of a replicating portfolio and why is that important?

Reference no: EM131518253

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