Question
Currently a 20-year Treasury bond with 4% semiannual coupon is traded at a yield of 5% (APR). (1) Is the price above or below 100?
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Currently a 20-year Treasury bond with 4% semiannual coupon is traded at a yield of 5% (APR).
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(1) Is the price above or below 100?
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(2) Calculate the current price of the bond.
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(3) If the yield increased by 0.1%, how much would the price change? Would the price increase or
decrease?
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Accounting Comes Alive The Color Accounting Parable
Authors: Mark Robilliard ,Peter Frampton, Chang Chang, Mark Morrow, John Gorman
1st Edition
1450769608, 978-1450769600
