Consider the following bond: $1000 face value, coupon rate of 12.5%, paid annually. The bond has a remaining maturity of 11 years. The bond is currently trading at a price of $1566.48. What is it's interest rate risk (as defined in the course PowerPoints)? Provide the answer as a % accurate to two decimal points. Enter only a number with a decimal point. Do not enter a % symbol or any other punctuation.
Consider the following bond: $1000 face value, coupon rate of 12.5%, paid annually. The bond has a remaining maturity of 11 years. The bond is currently trading at a price of $1566.48. What is it's interest rate risk (as defined in the course PowerPoints)? Provide the answer as a % accurate to two decimal points. Enter only a number with a decimal point. Do not enter a % symbol or any other punctuation.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 10FPE
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Consider the following bond: $1000 face value, coupon rate of 12.5%, paid annually. The bond has a remaining maturity of 11 years. The bond is currently trading at a price of $1566.48. What is it's interest rate risk (as defined in the course PowerPoints)? Provide the answer as a % accurate to two decimal points. Enter only a number with a decimal point. Do not enter a % symbol or any other punctuation.
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