Bond price / duration

Related BrainMass Solutions

• Duration Measures

  It tells about the riskiness of the bond. The bonds with higher durations have higher price volatility than bonds with lower durations. Often, the bond duration is proportional to the percentage change in the price of the yield.

• Bond Duration Calculation

  Calculate the total percentage price change (duration and convexity) to a 65 basis point decrease in interest rates for the bond in Questions 5 and 6. ** See the attached file. ** Thanks. ----------------------- Bond Duration 5.

• Duration and price volatility of bonds

  Rank the bonds in terms of price fluctuations with the least volatile bond first and the most volatile bonds last as judged by each bond's duration 1. Compute the duration for bond C, and rank the bonds on the basis of their price volatility.

• Duration of Bonds

  131724 Given the current $1,000 price of each bond, what is each bond's duration? Given each bond's duration, what is the forecasted change in the value of the bonds? If the rate on comparable bonds 6 %, what are the price and duration of each bond?

• Bond Price and Interest Rate

  228684 Bond Price and Interest Rate. Consider a bond with a duration of 6 years having a yield to maturity of 8% with interest rates expected to increase by 50 basis points (1/2 of 1%).

• Bond pricing, hedging using futures and forward, duration

  107627 Bonds, bond price, hedging using T-bond futures,hedging using forward contract, duration, change in price of bonds. 1 Village Bank has $240 million of assets with a duration of 14 years and liabilities worth $210 million with a duration of 4

• Effective Bond Duration; effective convexity; price change

  Similarly if interest rate fall by 50 basis point interest rate=4.36% Bond Price can be found by using the above formula Bond Price =115.0317998 (see into the cell for formulas) Bond Price at i=4.36%, (P2)=115.0317998 Effective duration

• A 20-year bond with a 7.50% semi-annual coupon bond

  As duration is approximate percentage change in price for a 100 basis or 1% change in rates, the larger the duration the more increase in bond price in my portfolio.

• Duration of bond

  % Price Change = -1 * Modified Duration * Yield Change 1.30% =-1*2.59*(9.5%-10%) The price will change by 1.30% Calculates duration, modified duration and price change when interest rate changes.