A bond with duration of 7.68 years, has a price of $987.50 when interest rates are 8.25%.

Fantastic news! We've Found the answer you've been seeking!

Question:

A bond with duration of 7.68 years, has a price of $987.50 when interest rates are 8.25%. What will be the price of this bond if interest rates change to 8.75%?

		$969.98
		$1061.73
		$1071.11
		$927.95
		$952.47 Will rate!! Thanks!!

Posted Date: Jul 10, 2024 02:09 AM

See More Questions

In addition to evaluating the performance of individual companies, securities analysts also evaluate and compare industry sectors. One of the variables used in this analysis is the percentage growth...
The following data are accumulated by Reynolds Company in evaluating the purchase of $104,000 of equipment, having a four-year useful life: a. Assuming that the desired rate of return is 15%,...
Topic: Average and FIFO Costing Percent of completion: (materials, 40%, conversion cost, 20%) FIFO Costing Materials A company uses the FIFO method to account for its work in ons. The account records...
adjusting entries: G. Interest has accrued at 8% on the long-term notes payable since July 1, 2018. The next six month interest payment at 9% on the bonds is due on March 1, 2019. The discount on...
Sketch the curves with equations given in question 3 parts a, b, c and d, labelling any stationary points with their coordinates. Data from Question 3 Find the coordinates of the points where the...
Trace the polygon and point P on paper. Then draw a rotation of the polygon the given number of degrees about P. 130 Q R T P S
Name any devices other than the three mentioned in Section 31. 1-battery, solar cell, and electric generator that can act as a power source in an electric circuit. Data from Section 31. 1...
A thick resistor and a thin resistor of the same length and material are connected in series, as shown in Figure 31. 29. Which resistor has $(a)$ the greater potential difference across it and...
Note that the amount of 25k that has already been spent on developing the website is not included in this analysis, as it represents a sunk cost. The decision rule for ARR is that a project should be...

A bond with duration of 7.68 years, has a price of $987.50 when interest rates are 8.25%.

Question:

Expert Answer:

Students also viewed these finance questions