An 8% coupon $100 par value bond matures in 2 yea

财务会计 已帮助: 时间:2024-11-17 12:28:58

An 8% coupon, $100 par value bond matures in 2 years and is selling at $98.79 to yield 8 percent. One year ago this bond was sold at a price of $97.02 to yield 9 percent. The bond pays interest annually. The change in price attributable to the change in maturity is closest to:
A. 4.97.
B. 3.21.
C. 1.22.

难度:⭐⭐⭐

题库:财会类考试,特许金融分析师(C,CFA一级

标签:at,is,selling

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2024-11-17 12:28:58

Ans:C
The price of the bond one year ago was $96.03 to yield 9%.
If the yield stays at 9%, the price of the bond today is:
8/(1+9%)1+108/(1+9%)2= $98.24
The change in price attributable to moving to maturity = $98.24 – $97.02 = $1.22

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