Question
Assume that all bonds pay semiannual coupons and have par values of $1,000 unless otherwise stated. All work must be shown. The values entered for
Assume that all bonds pay semiannual coupons and have par values of $1,000 unless otherwise stated. All work must be shown. The values entered for the menu from the calculator BOND MODE is considered valid work only when finding the YTM of a bond on a date in which accrued interest is zero
A bond with exactly 15 years left until maturity has a coupon of 4.5% and a YTM of 5.6%. Its current price quote is 88.936. 3 pts
a. What is the percentage change in the bonds price if the YTM falls 60 basis points?
b. What is the percentage change in the bonds price if the YTM rises 60 basis points?
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The Handbook Of Portfolio Mathematics
Authors: Vince
1st Edition
0471757683, 978-0471757689
