A bondholder owns 15-year government bonds with a $5 million face value and a 6 percent coupon that is paid annually. The bonds are currently priced at $550,018.73 with a yield of 5.034 percent. The bonds have a duration of 10.53 years. If interest rates are projected to increase by 50 basis points, how much will the bondholder gain or lose? O $27,571 O $25,063 O -$27,571 O -$25,063 O $5,313

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 4PROB
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Question
O None of the options are correct.
Account
Question 3
10 pts
Dashboard
A bondholder owns 15-year government bonds with a $5 million face
value and a 6 percent coupon that is paid annually. The bonds are
currently priced at $550,018.73 with a yield of 5.034 percent. The bonds
have a duration of 10.53 years. If interest rates are projected to increase
Courses
by 50 basis points, how much will the bondholder gain or lose?
Calendar
O $27,571
Inbox
O $25,063
O -$27,571
History
O -$25,063
Help
O $5,313
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d4 PYC
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K
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C
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я
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Alt
Fn
Transcribed Image Text:O None of the options are correct. Account Question 3 10 pts Dashboard A bondholder owns 15-year government bonds with a $5 million face value and a 6 percent coupon that is paid annually. The bonds are currently priced at $550,018.73 with a yield of 5.034 percent. The bonds have a duration of 10.53 years. If interest rates are projected to increase Courses by 50 basis points, how much will the bondholder gain or lose? Calendar O $27,571 Inbox O $25,063 O -$27,571 History O -$25,063 Help O $5,313 1 Приложенио арp.honorlock.cоm предоставлен доступ к вашему экрану. Закрыть доступ Скрыть 9:39 Введите здесь текст для поиска 27°C d4 PYC 23.06.2021 SAMSUNG E y Tab K H. F K DB ps Lock A B C C V M я 4 Alt Fn
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