Estimate the price of the bond, Accounting Basics

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Estimate the price of the bond

Problem:

Consider a 15-year bond with 9% semi-annual coupons. The modified duration is 3.2 and the convexity is 9. At the current yield rate the price of the bond is 95.50.

Required:

Question: Estimate the price of the bond if there is a 50 point increase in the yield.

Note: Please provide full description.

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Accounting Basics: Estimate the price of the bond

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Accounting Basics: Estimate the price of the bond

Reference No:- TGS0884436

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Recent Questions Asked Accounting Basics

Q : What is the nav

Q : Difference between a dominant gene and a recessive gene

Q : After-tax cash flow from the sale of asset

Q : Annual cost of sales

Q : Estimate the price of the bond

Q : Project equivalent annual cost

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Q : Bid price should you submit

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Estimate the price of the bond

Reference No:- TGS0884436

Recent Questions Asked Accounting Basics

Q : What is the nav

Q : Difference between a dominant gene and a recessive gene

Q : After-tax cash flow from the sale of asset

Q : Annual cost of sales

Q : Estimate the price of the bond

Q : Project equivalent annual cost

Q : Describe phospholipid metabolism

Q : Bid price should you submit

Q : Calculate the eac for both conveyor belt systems

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