Question 27 1 pts You own a $1,000 face value bond that has a 4.0% annual coupon and it matures in 6-years. The bond currently trades at its face value. You anticipate interest rates will fall to 3.0%. Using the bond's duration, what is the forecasted dollar value change in the value of the bond? Enter your answer below rounded to the nearest positive or negative whole number and without a dollar sign. For example, if you answer is -66.73, enter it as -67 or if your answer is 81.35, enter it as 81. D Question 28 1 pts Consider the characteristics of Bond G that is selling today at a $36 discount to its Face Value. Coupon (paid Annually) 8.0% Face Value $1,000 Maturity 4 years What is the yield to maturity on Bond G? 8.86% 10.03% 10.43% 8.00% O 9.11% Question 29 1 pts Choose the correct answer to finish the sentence below: Larry is considering two bonds, Bond Land Bond M, with the following characteristics: Bond L Bond M Price $1,000 $1,000 Par value $1,000 $1,000 Annual Interest Payment $90 $90 Maturity 17 years 28 years If the yields to maturity on the two bonds change from 9% to 8%, both bonds will increase in value, but bond M will increase more than bond L both bonds will increase in value, but bond L will increase more than bond M. both bonds will decrease in value, but bond M will decrease more than bond L. both bonds will decrease in value, but bond L will decrease more than bond M. Question 27 1 pts You own a $1,000 face value bond that has a 4.0% annual coupon and it matures in 6-years. The bond currently trades at its face value. You anticipate interest rates will fall to 3.0%. Using the bond's duration, what is the forecasted dollar value change in the value of the bond? Enter your answer below rounded to the nearest positive or negative whole number and without a dollar sign. For example, if you answer is -66.73, enter it as -67 or if your answer is 81.35, enter it as 81. D Question 28 1 pts Consider the characteristics of Bond G that is selling today at a $36 discount to its Face Value. Coupon (paid Annually) 8.0% Face Value $1,000 Maturity 4 years What is the yield to maturity on Bond G? 8.86% 10.03% 10.43% 8.00% O 9.11% Question 29 1 pts Choose the correct answer to finish the sentence below: Larry is considering two bonds, Bond Land Bond M, with the following characteristics: Bond L Bond M Price $1,000 $1,000 Par value $1,000 $1,000 Annual Interest Payment $90 $90 Maturity 17 years 28 years If the yields to maturity on the two bonds change from 9% to 8%, both bonds will increase in value, but bond M will increase more than bond L both bonds will increase in value, but bond L will increase more than bond M. both bonds will decrease in value, but bond M will decrease more than bond L. both bonds will decrease in value, but bond L will decrease more than bond M
