9. (Duration) How much will a bond with a duration of 4 and worth $900 change in price if the YTM increases by 2%? 10. (
Posted: Sun Jul 03, 2022 12:57 pm
9. (Duration) How much will a bond with a duration of 4 and worth $900 change in price if the YTM increases by 2%? 10. (Bond valuation) Thumb Juice Corp.'s 15-year, $1,000 par value bonds pay 12% interest annually. The market price of the bonds is $1,062.20 and your required rate of return is 10%. a. Compute the bond's market expected rate of return. b. Determine the value of the bond to you, given your required rate of return. Should you purchase this bond? Why or why not? c.