Assume You Have A Bond Bought On 1st Of Aubin 2005 Maturity Date Is 1st Of August 2016 If The Bond Has Semi Annual Cou 1 (28.16 KiB) Viewed 58 times
Assume You Have A Bond Bought On 1st Of Aubin 2005 Maturity Date Is 1st Of August 2016 If The Bond Has Semi Annual Cou 2 (30.17 KiB) Viewed 58 times
Assume you have a bond bought on 1st of Aubin 2005, maturity date is 1st of August 2016, if the bond has semi annual coupon payments with 8% YTM and 9% Coupon rate, find the following: A. Find the PV of the bond (5 marks) B. Find the PV of the bond given it's a Zero-Coupon Bond. (2 marks) c. What is the bond's price elasticity if the required return changed to 10%? (3 marks) D. Calculate the duration of the bond. (3 marks) E. What is the percentage change in bond's price for an increase in yield for 0.3 percentage point. (1 mark) F. With a decrease in interest rates, would you prefer investing in coupon or zero coupon bonds and why? (1 mark)
in an her forms would be accepted. mat includes your names Assume you have a bond bought on 1st of September 2012, maturity date is 1st of September 2023, if the bond has semi annual coupon payments with 7% YTM and 10% Coupon rate, find the following: Find the PV of the bond (5 marks) Find the PV of the bond given it's a Zero-Coupon Bond. (2 marks) What is the bond's price elasticity if the required return changed to 9%? (3 marks) D. Calculate the duration of the bond. E. What is the percentage change in bond's price for an increase in yield for 0.3 percentage point. (3 marks) (1 mark) With a decrease in interest rates, would you prefer investing in coupon or zero coupon bonds and why? (1 mark) A B. F.
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