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please answer the last three parts Yesterday you bought a three-year, $1,000 bond with a 7% coupon (paid annually) and a 5% yield to maturity.
please answer the last three parts
Yesterday you bought a three-year, $1,000 bond with a 7% coupon (paid annually) and a 5% yield to maturity. Today the yield on similar bonds rose to 6%. What was the purchase price of the bond? Answer format: e.g. X,XXX = XXXX or 1,234 = 1234 (no commas, round to nearest whole number) 1054 If market interest rates remain at 6% until the bond matures, what return (%) will you actually realize on your bond investment? Answer format: e.g. XX.X% = XX.X, 12.3% = 12.3 (no % sign, only 1 decimal place) 6.9 What was the duration of the bond on the acquisition date? Answer format: e.q. XX.X = XX.X. 12.3 = 12.3 (only 1 decimal JOL w What was the duration of the bond on the acquisition date? Answer format: e.g. XX.X = XX.X, 12.3 = 12.3 (only 1 decimal place) 2.8 How long should you hold the bond to earn the 5% yield-to- maturity you thought you would earn? Answer format: e.g. XX.X = XX.X, 12.3 = 12.3 (only 1 decimal place) Years Using the data available on the acquisition date of the bond, if bond yields were to fall by 40 basis points, what would be the change in the bond's price, using the modified duration formula? Answer format: e.g. $XX.XX = XX.XX, $12.34 = 12.34 (no $ sign, 2 decimal places) (Note: Enter both value and the sign + or of the change in price in Using the data available on the acquisition date of the bond, if bond yields were to fall by 40 basis points, what would be the change in the bond's price, using the modified duration formula? Answer format: e.g. $XX.XX = XX.XX, $12.34 = 12.34 (no $ sign, 2 decimal places) (Note: Enter both value and the sign + or - of the change in price in the answer) A Yesterday you bought a three-year, $1,000 bond with a 7% coupon (paid annually) and a 5% yield to maturity. Today the yield on similar bonds rose to 6%. What was the purchase price of the bond? Answer format: e.g. X,XXX = XXXX or 1,234 = 1234 (no commas, round to nearest whole number) 1054 If market interest rates remain at 6% until the bond matures, what return (%) will you actually realize on your bond investment? Answer format: e.g. XX.X% = XX.X, 12.3% = 12.3 (no % sign, only 1 decimal place) 6.9 What was the duration of the bond on the acquisition date? Answer format: e.q. XX.X = XX.X. 12.3 = 12.3 (only 1 decimal JOL w What was the duration of the bond on the acquisition date? Answer format: e.g. XX.X = XX.X, 12.3 = 12.3 (only 1 decimal place) 2.8 How long should you hold the bond to earn the 5% yield-to- maturity you thought you would earn? Answer format: e.g. XX.X = XX.X, 12.3 = 12.3 (only 1 decimal place) Years Using the data available on the acquisition date of the bond, if bond yields were to fall by 40 basis points, what would be the change in the bond's price, using the modified duration formula? Answer format: e.g. $XX.XX = XX.XX, $12.34 = 12.34 (no $ sign, 2 decimal places) (Note: Enter both value and the sign + or of the change in price in Using the data available on the acquisition date of the bond, if bond yields were to fall by 40 basis points, what would be the change in the bond's price, using the modified duration formula? Answer format: e.g. $XX.XX = XX.XX, $12.34 = 12.34 (no $ sign, 2 decimal places) (Note: Enter both value and the sign + or - of the change in price in the answer) A Step by Step Solution
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