QUESTION 12 Consider a 4-year 5% coupon bond selling for $102. The yield to maturity is 4%, and the par value for this bond is $100. Calculate the actual price of the bond for a 50 basís-point increase in interest rates. O A. $103.726 O B. $101.812 O C. $104.762 D. $99.23 QUESTION 13 Based on Question 12 above, estimate the price of the bond for a 100 basis-point increase in interest rates. A. $101.812 O B. $99.24 OC. $100.00 O D. $104.342
QUESTION 12 Consider a 4-year 5% coupon bond selling for $102. The yield to maturity is 4%, and the par value for this bond is $100. Calculate the actual price of the bond for a 50 basís-point increase in interest rates. O A. $103.726 O B. $101.812 O C. $104.762 D. $99.23 QUESTION 13 Based on Question 12 above, estimate the price of the bond for a 100 basis-point increase in interest rates. A. $101.812 O B. $99.24 OC. $100.00 O D. $104.342
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 15PROB
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