What would be the percentage change in the price

Assignment Help Finance Basics
Reference no: EM13270804

Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has six years to maturity, whereas Bond Dave has 17 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: EM13270804

Questions Cloud

Give digital lp filter using bi-linear transformation method : Design and realize a digital LP filter using the bi-linear transformation method to satisfy the following characteristics: a- monotonic stopband and passband. b- -3.01dB cutoff frequency of o.5pi rad. c- magnitude down at least 15dB at 0.75pi rad.
Explain the connecting tube has no volume : The following arrangement of flasks is set up. Assuming no temperature change and no chemical reaction, determine the final pressure inside the system after all stopcocks are opened and equilibrium is reached. The connecting tube has no volume. 1s..
Explain what mass of water will evaporate : At 25 °C, water has an equilibrium vapor pressure of 23.8 mm Hg. If 2.500 g of water is sealed in an evacuated 10.0-L flask and heated to 25 °C, what mass of water will evaporate?
How much will you have to give the customer in 3 years : At the end of 3 years you need to return the deposit and the interest to the customer. How much will you have to give the customer in 3 years?
What would be the percentage change in the price : 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 %.
Explain what happens to some solute during crystallization : What happens to some solute during crystallization when too much solvent is evaporated and what do you do
What is electric field at the position of the second charge : A particle with a charge of +5.5*10^-6 C sets up an electric filed. A second particle with a charge of -3.0*10^-6 C is moved to a point 4.2 m a way from the first charge. what is the electric field at the position of the second charge
What is the torque on the loop from the magnetic field : A coil of wire contains 50 square turns, each one 5 cm long and 3 cm wide, and has a current of 30 A running through it. it is placed inside a magnetic field of 0.55 T at a 60 degree angle. what is the torque on the loop from the magnetic field
Explain a chromium-containing compound has the formula : A chromium-containing compound has the formula Fe(x)Cr(y)O4 and is 28.59% oxygen by mass. Find x and y.

Reviews

Write a Review

Finance Basics Questions & Answers

  What was the amount of the costs incurred by the firm

The tax rate was 40 percent. What was the amount of the costs incurred by the firm?

  Compute the anticipated value of the dividends

Hunter Petroleum Company paid a $2 dividend last year. The dividend is expected to increase at a constant rate of 5% over the next 3-years. The required rate of return is 12%

  How large a sales increase can the company achieve

How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?

  Calculating annual payment

Cal Lury owes $10,000 now. A lender will carry the debt for five more years at 10% interest. That is, in this particular case, the amount owed will go up by 10% per year for 5-years.

  Set up an amortization schedule for the first two payments

A loan of $7,520 is to be repaid over seven years with monthly payments and an interest rate of 19.0827%, compounded annually. Set up an amortization schedule for the first two payments and the last two payments.

  What are goodwins expected dividend and capital gains

Goodwin has been very successful, but it hasn't paid a dividend yet. Which of the following might explain why the firm hasn't paid a dividend? Check all that apply.

  Research participants take a test of manual dexterity

Four research participants take a test of manual dexterity (high scores mean better dexterity) and an anxiety test (high scores mean more anxiety). The scores are as follows:

  Discuss contingencies

Discuss contingencies and how they are reported on financial statements. What conditions must be met before a contingency can be charged against income?

  What will be the flotation-adjusted cost of equity

Assume Brown-Murphies faces a flotation cost of 10 percent on new equity issues.

  Why is the amount of interest earned

Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

  Calculation of npv of two projects with different lives

Calculation of NPV of two projects with different lives and cash flows and considering a project that has the following cash flow and WACC data

  Unrecognized gains and losses, corridor amortization

Rachel Avery, accounting clerk in the personnel office of Clarence G. Avery Corporation, has begun to calculate pension cost for 2004 but is not sure whether or not she should include the amortization of unrecognized gains or losses.

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