FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The price of a corporate bond changes one day from 94.25 to 95.17 per 100 of par value. The modified duration for the bond is

The price of a corporate bond changes one day from 94.25 to 95.17 per 100 of par value. The modified duration for the bond is 6.62 in years. What is the estimated change in this bond's yield? Express your answer in basis points, and round to two decimal places. If the answer is a decrease in yield, then include the negative in your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments An Introduction

Investments An Introduction

Authors: Herbert B Mayo

11th Edition

1133936520, 9781133936527

More Books

Students also viewed these Finance questions

Question

★★★★★
Suppose you are using a completely randomized design to study some phenomenon. There are three treatment levels and a total of 17 people in the study. Complete the following ANOVA table. Use...

Answered: 1 week ago

Question

★★★★★
A lens with a focal length of 25 cm is placed 40 cm in front of a lens with a focal length of 5.0 cm. How far from the second lens is the final image of an object infinitely far from the first lens?...

Answered: 1 week ago

Question

★★★★★
4. One important way in which a teacher can motivate students is to show an interest in their lives. All but which one of the following are appropriate motivational strategies that demonstrate an...

Answered: 1 week ago

Question

★★★★★
Beechers Boston Barbeque Company purchased a customer list and an ongoing research project for a total of $300,000. Beecher uses the expected cash flow approach for estimating the fair value of these...

Answered: 1 week ago

Question

★★★★★
Assume the Organization Wide default sharing is set to private for all objects and no sharing rules have been created. You have two users in the Sales Rep Role, can they view each other's data?A ....

Answered: 1 week ago

Question

★★★★★
Assume that on January 1 , year 1 , ABC Incorporated issued 9 , 9 0 0 stock options with an estimated value of $ 1 8 per option. Each option entitles the owner to purchase one share of ABC stock for...

Answered: 1 week ago

Question

★★★★★
please help Continuing Payroll Project: Prevosti Farms and Sugarhouse - EERF (Algo) Prevosu Farms and Sugarhouse pays. Its employees according to their job classification. The following employees...

Answered: 1 week ago

Question

★★★★★
The following independent situations require professional judgment for determining when to recognize revenue from the transactions. Identify when revenue should be recognized in each of the...

Answered: 1 week ago

Question

★★★★★
1)Jack works for a polymer firm that has developed a new insulation material that has the potential to make newly constructed homes more energy efficient. He is asked to develop a voice of the...

Answered: 1 week ago

Question

★★★★★
BPR always involves automation. Group of answer choices True False

Answered: 1 week ago

Question

★★★★★
P.14 A clinic specializes in shoulder injuries. A patient is randomly selected from the population of all clinic clients. Let S be the number of doctor visits for shoulder problems in the past six...

Answered: 1 week ago

Question

★★★★★
How likely is it that some form of semistructured or in-depth interviews would be an acceptable form of data gathering within the organisation?

Answered: 1 week ago

Question

★★★★★
Which TWO of the following can be treated as forms of qualitative data? a Google analytics. b Social media posts. c LinkedIn connection requests. d Web pages.

Answered: 1 week ago

Question

★★★★★
Which of the following statements are correct in relation to using video recording as a form of research data? a Takes a great deal of time to do. b The data must be interpreted. c Should be...

Answered: 1 week ago

Previous Question Next Question