Lou & Grey Snap ) Course Home. L x G Gmail Ole Miss Busin My Grades-Finx × 0 Not

Question

Lou & Grey Snap ) Course Home. L x G Gmail Ole Miss Busin My Grades-Finx × 0 Not Secure ezto.mheducation.com/hm.tpx Apps Bookmarks DCourse Materials M McGraw-Hill Connect M McGraw-Hill ConnectHomework how to create 10.00 points Consider an eigyar, 13 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 10 percent. a. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 Price of the bond b. If the rate of interest increases 1 percent, what will be the bond's new price? (Do not round Round your answer to 2 decimal places.(e.g. 32.16) Bond's new priceS c. Using your answers to parts (a) an the 1 percent increase in interest rates? (Negative value should be indicated by a mi not round intermediate calculations. Round your answer to d (b), what is the percentage change in the bond's price as a result of nus sign. Do 2 decimal places. (e.g, 32.16) Percantiage chainge d caiculations. Round your answers to 2 decimal places.(e.g32.16) Bond's new price Percentage change 20 8

Explanation / Answer

a

b.

c

Price Change =1102.92-1160.05=57.13

d

Cash Flow PV factor 10% PV value Interest Rate 130      5.3349      693.54 Maturity value 1000      0.4665      466.51 Bond Value 1,160.05

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.