The outstanding bonds of Alpha Extracts have a yield to maturity of 7.4 percent and a modified duration of 11.8.If the yield to maturity instantly decreased to 6.8 percent,the bond's price would increase/decrease by ________ percent.
A) -7.08
B) -5.67
C) 1.45
D) 5.72
E) 7.08
Correct Answer:
Verified
Q84: Phil owns a 7 percent,semiannual coupon bond
Q85: A bond has a Macaulay duration of
Q86: A 6 percent,semiannual coupon bond has a
Q87: A bond has a dollar value of
Q88: A bond has a Macaulay duration of
Q90: Two bonds have a coupon rate of
Q91: A bond pays semiannual interest payments of
Q92: Hallmark's Furniture Outlet is issuing 15-year,7.5 percent
Q93: A bond has a dollar value of
Q94: A $1,000 face value bond has a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents