nd has a 11% Coupom Rate, maturity is 12 years and face value is 5,000 $. Yield to Maturity (YTM) of this bond is 8, and current price of the bond is 7,450 OMR. The Macmilay duration of bond is 7.64 Calculate the expected change in band value if the yield to maturity decreases by 0.9%

nd has a 11% Coupom Rate, maturity is 12 years and face value is 5,000 $. Yield to Maturity (YTM) of this bond is 8, and current price of the bond is 7,450 OMR. The Macmilay duration of bond is 7.64 Calculate the expected change in band value if the yield to maturity decreases by 0.9%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...

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A bond has a 11% Coupom Rate, maturity is 12 years and face value is 5,000 $. Yield to Maturity (YTM) of this bond is 8, and current price of the bond is 7,450 OMR. The Macmilay duration of bond is 7.64

Calculate the expected change in band value if the yield to maturity decreases by 0.9%

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