Answered step by step
Verified Expert Solution
Question
1 Approved Answer
help me and i want with formula in excel please A 30-year maturity bond making annual coupon payments with a coupon rate of 16.0% has
help me and i want with formula in excel please
A 30-year maturity bond making annual coupon payments with a coupon rate of 16.0% has duration of 10.55 years. The bond currently sells at a yield to maturity of 9%. Required: a. Find the price of the bond if its yield to maturity falls to 8%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) HINT: CH10 Bond Valuation concepts. Price of the bond b. What price would be predicted by the duration rule, if its yield to maturity falls to 8% ? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Predicted price c. Find the price of the bond if it's yield to maturity rises to 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) HINT: CH10 Bond Valuation concepts. Price of the bond d. What price would be predicted by the duration rule, if it's yield to maturity rises to 10% ? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Predicted price Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started