question archive 1) Susan Oil has just issued a bond with the following characteristics: Type Coupon Rate YTM Par Value Maturity Annual 9
1) Susan Oil has just issued a bond with the following characteristics: Type Coupon Rate YTM Par Value Maturity Annual 9
Subject:FinancePrice: Bought3
1) Susan Oil has just issued a bond with the following characteristics:
| Type | Coupon Rate | YTM | Par Value | Maturity |
| Annual | 9.9% | 8.6% | $1,000 | 5 years |
The modified duration of Susan Oil’s bond is ____________.
|
3.86 |
||
|
3.87 |
||
|
3.90 |
||
|
4.20 |
||
|
None of the above |
2. Kepler International has just issued a bond with the following characteristics:
| Type | Coupon Rate | YTM | Par Value | Maturity |
| Annual | 14.1% | 11.4% | $1,000 | 30 years |
The modified duration of Kepler International’s bond is ____________.
|
7.04 |
||
|
8.29 |
||
|
9.23 |
||
|
9.43 |
||
|
None of the above |
3.Robinson has a bond that is traded at its par value of $1,000, has a 5% coupon rate, and has a 4-year maturity. If the interest rate were to increase by 150 basis points, his predicted new price for the bond based on duration only is ____________.
|
925.0 |
||
|
935.1 |
||
|
938.2 |
||
|
993.8 |
||
|
None of the above |
