medium · Principles of Finance valuation
A 1,000 face value bond with a 5% annual coupon and 10 years to maturity currently trades at par.
If the yield to maturity increases by 100 basis points, what is the approximate price change using only modified duration?
- -10.00%
- -7.72%
- -5.00%
- -8.11%
Sign up free to see the explanation and track your rank →
More Principles of Finance valuation practice
- What is its current market price?
- What is its Modified Duration?
- A 10-year corporate bond with a face value of $1,000 pays an annual coupon of 6%. If the c
- If the market yield to maturity (YTM) suddenly increases to 5.5%, what will happen to the
- If the stock price is 35 at expiration, what is the net profit?
- If the current market interest rate for similar bonds is 6%, how will the bond be priced i
- What is the current market price of the bond?
- If the required return is 10%, what is the value of the stock using a two-stage DDM?