Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

What will be the new prices if market yields change immediately by pm 2.00 percent? (Do not round intermediate calculations. Enter all answers as positive

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed What will be the new prices if market yields change immediately by \pm 2.00 percent? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. (e.g., 32.16)) What will be the bonds' new prices if market yields change immediately by \pm 0.10 percent? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. (e.g., 32.16)) What is the amount of error between the duration prediction and the actual market values? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. (e.g., 32.16)) MLK Bank has an asset portfolio that consists of $160 million of 15year,8.5 percent annual coupon, $1,000 bonds that sell a par. a-1. What will be the bonds' new prices if market yields change immediately by \pm 0.10 percent? a-2. What will be the new prices if market yields change immediately by \pm 2.00 percent? b-1. The duration of these bonds is 9.0101 years. What are the predicted bond prices in each of the four cases using the duration rule? b-2. What is the amount of error between the duration prediction and the actual market values? Complete this question by entering your answers in the tabs below. What will be the bonds' new prices if market yields change immediately by \pm 0.10 percent? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. (e.g., 32.16)) The duration of these bonds is 9.0101 years. What are the predicted bond prices in each of the four cases using the duration rule? (Do not round intermediate calculations. Enter all answers as positive numbers. Round your answers to 2 decimal places. (e.g., 32.16))

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

3 > O Actual direct-labour hours Standard direct-labour hours...

Answered: 1 week ago