🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Finance
1
answer
0
watching
33
views

Which bond would have the greatest change in value given a 1% increase in the required rate of return on all bonds?

An 8% coupon one-year bond.

An 8% coupon consol bond.

All bonds would have the same change in value.

An 8% coupon 20-year bond.

Watch
1
answer
0
watching
33
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Jean Keeling
Jean KeelingLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Assume that Bond A and Bond B are identical in every way except for the coupon rate (i.e., both bonds have the same par value, maturity, and yield to maturity or required rate of return). Bond A has a 12% coupon rate and Bond B is a zero coupon bond. Both bonds have a yield to maturity of 8% per year. If interest rates increase so that the yield on both issues increases to 10%, what would happen to the price of the bonds?

A bond portfolio named DEX, comprises four bonds (face value=$1000):

1)50 semi-annual bond, 5-year maturity, a coupon rate of 4%.

2)100 annual bonds, 30-year maturity, 8% coupon bond.

3)150 zero coupon bonds, 10-year maturity.

4)200 zero coupon bonds, 20-year maturity.

If yield to maturity (discount rate) is 6% for all bonds per year, what is the market value of DEX?

A bond portfolio named DEX, comprises four bonds (face value=$1000):

1)50 semi-annual bond, 5-year maturity, a coupon rate of 4%.

2)100 annual bonds, 30-year maturity, 8% coupon bond.

3)150 zero coupon bonds, 10-year maturity.

4)200 zero coupon bonds, 20-year maturity.

Given a 6% initial yield, what is the DEX’s duration (use Macaulay’s duration)?

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in