26 Jul DETERMINE THE CURRENT PRICE OF THE BOND.
Assume you buy a 5-year 10% annual bond which is priced to yield 14%. face value is 1000. Calculate Show more Assume you buy a 5-year 10% annual bond which is priced to yield 14%. face value is 1000. Calculate the following items. 1. Determine the current price of the bond. 2. Determine the bonds Macaulay Duration (D). 3. Determine the bonds Modified Duration (Dmod). Interpret this value. 4. Given the price you calculated in part 1 above if open market interest rates are expected to drop by 75 basis points in the immediate future (from 14% down to 13.25%) determine: a. The percentage (%) change in price this bond can expect to realize when this change in yields occurs. b. The approximate dollar ($) value change [plus or minus] this bond can expect to see with this change in open market rates. c. The approximate new price this bond can expect to sell for after the change in open market yields. Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.