You manage a $800M bond portfolio and own a bond with an annual coupon of 35 with 5 years to maturity. The bond currently trades at a yield to mautirty of 0.5% What is the coupon rate of the bond? What is the price of the bond? Assume that the bond has a duration of 4.5 years At ytm of 0.05% what is the current yield on the bond? What is the bonds modified duration If you anticipate that a downgrade in the bonds rating will result in an increase in bond’s yield to maturity to 1.25%, what is the expected percentage change in the bond price

You manage a $800M bond portfolio and own a bond with an annual coupon of 35 with 5 years to maturity. The bond currently trades at a yield to mautirty of 0.5% What is the coupon rate of the bond? What is the price of the bond? Assume that the bond has a duration of 4.5 years At ytm of 0.05% what is the current yield on the bond? What is the bonds modified duration If you anticipate that a downgrade in the bonds rating will result in an increase in bond’s yield to maturity to 1.25%, what is the expected percentage change in the bond price

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 7DTM

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