标题: Try this one Sample exam [打印本页] 作者: studyn 时间: 2013-4-10 23:23 标题: Try this one Sample exam
An 8% coupon bond with a par value of $100 matures in 6 years and is selling at $95.51 with a yield of 9%. Exactly one year ago this bond sold at a price of $90.26 with a yield of 10%. The bond pays annual interest. The change in price attributable to the change in maturity is closest to:
A. $0.54.
B. $1.03.
C. $4.22.
D. $5.25.作者: trogulj 时间: 2013-4-10 23:24
how do u figure this one out?作者: canadiananalyst 时间: 2013-4-10 23:24
you calculate the pv of the bond with the same terms as a year ago EXCEPT matures in 6 years. This makes it so that you will only see the difference due to change in maturity
fv 100
n 6
i/y 10
pmt 8
cpt pv
pv = 91.29
91.29 90.26 = 1.03
