A bond for the Chelle Corporation has the following characteristics Maturity 12 years Coupon - 12% Yield to maturity - 11.50% Macaulay duration -6.73 years Convexity - 59.30 Noncalable ge Assume bond pays interest semiannually. Use only the data provided in the table above (in the problem statement for your calculations 6. Calculate the approximate price change for this band using only its duration, assuming yield to maturity increased by 250 basis points. Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, if any. Percentage change in pret When you are dealing with large yield changes to calculate more precise bond price change Set on price charge b. Calculate the approximate price change for this bend, using only duration, if its yield to maturity declined by 500 basis points. Do not round Intermediate calculations Round your answer to two decimal places. Use o minus sign to enter negative value, if any. Percentage change in price 96 Calculate the aproximate price change for this band using both duration and convexity in the computation once again assuming that its yield to maturity declined by 500 basis points. Do not round Intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, any. Percentage change in prior d. Discuss (without calculations) what would happen to your estimate of the price change if this was a callable bond When rates dedine, the price of collable bond increase rate than the price of noncaltable bond A bond for the Chelle Corporation has the following characteristics Maturity 12 years Coupon - 12% Yield to maturity - 11.50% Macaulay duration -6.73 years Convexity - 59.30 Noncalable ge Assume bond pays interest semiannually. Use only the data provided in the table above (in the problem statement for your calculations 6. Calculate the approximate price change for this band using only its duration, assuming yield to maturity increased by 250 basis points. Do not round intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, if any. Percentage change in pret When you are dealing with large yield changes to calculate more precise bond price change Set on price charge b. Calculate the approximate price change for this bend, using only duration, if its yield to maturity declined by 500 basis points. Do not round Intermediate calculations Round your answer to two decimal places. Use o minus sign to enter negative value, if any. Percentage change in price 96 Calculate the aproximate price change for this band using both duration and convexity in the computation once again assuming that its yield to maturity declined by 500 basis points. Do not round Intermediate calculations. Round your answer to two decimal places. Use a minus sign to enter negative value, any. Percentage change in prior d. Discuss (without calculations) what would happen to your estimate of the price change if this was a callable bond When rates dedine, the price of collable bond increase rate than the price of noncaltable bond
