Company XYZ 4.5 of 11/16/2028

Bond has "A" rating; bonds with that rating have 150 bps spread

Similar risk-free bond yield 5%

What is price?

Spreads narrow from 150 to 100

Risk free rate increases 25

New price?

If you have a price quote

Corporate ABC 7.2% of 11/16/2029 is quoted 105.20/105.80

What price would you pay if BUYING this bond?

A 2029 GOC bond yields 4.5%

What is YTM, spread?

What if this bond is callable?

Call date is 11/16/2027 at 103.50

what is YTC?

Is the bond likely to be called?

 

What is the Macaulay Duration of

Corporate ABC 7.2% of 11/16/2029 at price 105.80 

 

What is the Modified Duration?  Corporate ABC 7.2% of 11/16/2029 at price 105.80

If Interest rates increase by 1% 

• What the approximate price of the bond? • If you included convexity, would bond price be lower or higher