You are considering buying a 30-year U.S. Treasury bond but are nervous about the effect on bond price if the yield to maturity on the bond increases. The bond has a 3% coupon rate and pays coupons semi-annually. The duration is 19 years. Suppose that interest rates on this bond rise by 0.9%. Calculate the corresponding percentage change in the price of the bond using the approximation method based on bond duration.

Answers

Answer 1

Answer:

The corresponding change in bond price = 17.1%

Step-by-step explanation:

In this question, we are interested in calculating the percentage change in the bond price using the approximation method based on bond duration;

Mathematically;

% change in bond price = Duration * Change in yield

From the question;

Duration = 19 years

Change in yield = 0.9%

Thus;

% change in bond price = 19 * 0.9% = 17.1%


Related Questions

750 tickets were sold for a game for a total of $1,400.00. If adult tickets sold for $2.50 and children's tickets sold
for $1.50, how many of each kind of ticket were sold?
They sold...
adult tickets and...
children's tickets.

Answers

Answer:

They sold 750

adult tickets is 275 and...

children's tickets is 475

What value of c makes the polynomial below a perfect square? X2+5x+C
A. 25/2
B. 25/4
C. 5/4
D. 5/2

Answers

Answer:

I think the answer is c = 25/4

Step-by-step explanation:

Cynthia, Annie, and Suz went to Pepe's pizza palace for dinner. They shared a large pizza and each girl ordered? A soda. When the bill came they talked about how to slit it up. Annie, you had 3 slices and a medium soda so you should pay one-third of the bill. I'll chip in a dollar more than that, replied Annie.And since you had only 2 slices and also ordered a small soda, you should pay 20% of the bill.Cynthia said I ate 3 slices and had a large soda so I'll pay the remaining $8.80. How much was the total bill for the pizza and th 3 sodas and how much did each girl pay.

Answers

Answer:

The total bill = $20.85

Annie = $7.95

Suz = $4.17

Cynthia = $8.80

Step-by-step explanation:

Let the total bill = $x

For Annie

Annie, you had 3 slices and a medium soda so you should pay one-third of the bill. I'll chip in a dollar more than that, replied Annie.

Annie = 1/3 of x + $1

= 0.33x + $1

For Suz

And since you had only 2 slices and also ordered a small soda, you should pay 20% of the bill.

20% of x = 1/5x

= 0.2x

Cynthia said I ate 3 slices and had a large soda so I'll pay the remaining $8.80.

0.33x + $1 + 0.2 x + $8.80 = $x

Collect like terms

$1 + $8.80 = x - 0.33x - 0.2x

$9.80 = x - 0.53x

$9.80 = 0.47x

x = $9.80/0.47

x = $20.85106383

≈ $20.85

Therefore,

For Annie,

The total amount she is paying is

0.33x + $1

= 0.33 × $20.85 + $1

= $6.95 + $1

= $7.96

For Suz

= 0.2x

= 0.2 × $20.85

= $4.17

For Cynthia

= $8.80

help with this geometry?

Answers

Answer:

angle 5 is equal to angle 1

what is the answer to 5x - 22=33

Answers

Answer:

The answer would be 11.

Step-by-step explanation:

First, you know that 22 and 33 make 5x. So, you must add 22 and 33 to get 55. Finally, you should divide 55 by 5 to get 11. I hope this helps everyone out there!

Answer:

x=11

Step-by-step explanation:

5x-22=33

+22= 33+22

5x=55

5x/5x=55/5

1x= 11

Mr. Stein receives a water bill from city hall. He notices that the city charges $50 for fire and sewer service and $3 for every 1000 gallons of water used. Mr. Stein wants to construct a model describing the relationship between the cost of his water bill and the amount of water he uses. Which statement best describes the model that Mr. Stein should create?

Answers

Complete question is;

Mr. Stein receives a water bill from city hall. He notices that the city charges $50 for fire and sewer service and $3 for every 1000 gallons of water used. Mr. Stein wants to construct a model describing the relationship between the cost of his water bill and the amount of water he uses.

Which statement best describes the model that Mr. Stein should create?

A. Mr. Stein should use a linear model, since the water bill changes at a constant rate relative to the amount

of water he uses.

B. Mr. Stein should use an exponential model, since the water bill changes at a constant rate relative to the amount of water he uses.

C. Mr. Stein should use a linear model, since the water bill changes at a constant percent rate relative to the amount of water he uses.

D. Mr. Stein should use an exponential model, since the water bill changes at a constant percent rate relative to the amount of water he uses.

Answer:

Option A: Mr. Stein should use a linear model, since the water bill changes at a constant rate relative to the amount

of water he uses.

Step-by-step explanation:

We are told that the city charges $50 for fire and sewer service and $3 for every 1000 gallons of water used.

Since there's a fixed charge of $50 for fire and sewer service and also that the city charges $3 for every 1000 gallons of water used. It means that there is a constant rate of charge for every 1000 gallons used.

It means that the bill he gets depends on the rate of water he consumes.

Thus, stein should use a linear model because the water bill changes at a constant rate relative to the water he consumes.

Answer:

A

Step-by-step explanation:

Can someone help me

Answers

Answer:

Answer I think 2 is it

...........

Find the measures of the interior angles.

Answers

the answer would be

B = 88°
C = 44°

Simplify:
5x+3−(x+1)=
I will give brainliest to the correct answer :D

Answers

Answer:

4x+2

I hope this helps love. Have a good night!!

Remove parentheses.

5x+3-x-15x+3−x−1

Collect like terms.

(5x-x)+(3-1)(5x−x)+(3−1)

Simplify.

4x+24x+2

.

Clarissa needs a $2,500 loan in order to buy a car. Which loan option would allow her to pay the least amount of interest?

Answers

Answer:

mortgage

Step-by-step explanation:

are loans distributed by banks to allow consumers to buy homes they can't pay for upfront. A mortgage is tied to your home, meaning you risk foreclosure if you fall behind on payments. Mortgages have among the lowest interest rates of all loans.

Answer:

An 18-month loan with a 4.75% annual simple interest rate

Step-by-step explanation:

PLEASE HELP ME.....​ PLEASE

Answers

The answer is 5/24

Because you have to cross multiply 7*3 and 8*2 so you get 21 and 16

You subtract that and you get 5 which is your top number

Answer:

answer is 5/24

Step-by-step explanation:

hope it help


A realtor sells 3 houses this month for a total of $825,000, and each buyer uses her company to process their loan.

She earns a base pay of $2,600 each month
plus 1.5% of her total house sales.

She also gets a fee of $12 for each loan she gets serviced through her company.

What are her total earnings for the month?

Enter the correct answer in the box.

Answers

Answer:

$2,651

Step-by-step explanation:

The first step is to find what 1.5% of $2,600 is.

Secondly, divide 2600 / 100 = 26

Finally, multiply 26 by 1.5 = 39.

Add 39 and 12 to 2600 = $2,651.00 total earnings for the month.

Answer:

15,011

Step-by-step explanation:

Because 1.5 percent of 825,000 is 12375. She gets 2,600, so add that, and 12 times 3 for 3 houses is 36.

Add 12,375+2,600+36, you get 15,011!

PLEASE HELP ANSWER ASAP I WILL BE GIVING BRAINLIEST :)

Answers

Answer:

2,4,6,7

Step-by-step explanation:

can't have the same x value in a function

The functions are:

{(1,3), (3, 7), (5, 11), (7, 15), (9, 19)}{(-2, 4), (-1, 1), (0, 0), (1, 1), (2, 2)}{(6,3), (4, 1), (2, 1), (0, -1), (-2,-3)}

What is Function?

In mathematics, a function is represented as a rule that produces a distinct result for each input x. In mathematics, a function is indicated by a mapping or transformation. Typically, these functions are identified by letters like f, g, and h. The collection of all the values that the function may input while it is defined is known as the domain. The entire set of values that the function's output can produce is referred to as the range. The set of values that could be a function's outputs is known as the co-domain.

Given:

We know that the function are relation when the input values only be distinct and the output values can be different or same.

So, according to that

{(1,3), (3, 7), (5, 11), (7, 15), (9, 19)} is a function.

and, {(1, 3), (1,7), (5, 11), (5, 15), (9, 19)} is not a function.

and, {(-2, 4), (-1, 1), (0, 0), (1, 1), (2, 2)} is a function

and, {(2,4), (1, 1), (0,0), (1,-1), (2,-4)} is not a function.

and, {(6,3), (4, 1), (2, 1), (0, -1), (-2,-3)} is a function.

and, {(1,3), (3,7), (3, 11), (7, 15), (9,19)} is not a function.

and, {(1,3), (3,7), (5, 11), (9, 15), (9,19)} is not a function.

Learn more about function here:

https://brainly.com/question/12431044

#SPJ5

Olivia planted 25 tomato plants but only 20 produce tomatoes what percentage of the plants did not produce tomatoes?

Answers

answer:

1.25 %

explanation:

25 - 20 = 5 (5 plants didn't produce)

25 ÷ 100 × 5 = 1.25 %

if the residuals are near zero, what does this tell me about the best-fit line?

Answers

Answer:

The closer a data's point residual is to 0 the better the fit.

Marjorie consumed 1.5 gallons of water in one day. How many milliliters are equal to 1.5 gallons, if 1 liter = 1,000 milliliters and 1 gallon = 3.785 liters?
5.6775 milliliters
567.75 milliliters
5,677.5 milliliters
56,775 milliliters

Answers

5.6775 milliliters

Explanation: First ask how many liters are in one gallon(3.79) then split that number in half (1.895)and add to that to 3.79 and your final answer is 5.6775

Answer:

56.775

Step-by-step explanation:

If g(x) = 2x2 - 4 and f(x) = 4x - 9, find
f(-4).
28
a
b
-36
c
60
d
-25

Answers

Answer:

D

Step-by-step explanation:

plug in the value to the given expression

f(-4) = 4(-4) - 9

f(-4) = -16 - 9

f(-4) = -25

Suppose that the height (in centimeters) of a candle is a linear function of the amount of time (in hours) it has been burning. After 10 hours of burning, a candle has a height of 17 centimeters. After 21 hours of burning, its height is 12.6 centimeters. What is the height of the candle after 14 hours?

Answers

Answer:

The height of the candle after 14 hours is 15.4 centimeters

Step-by-step explanation:

A linear function is a polynomial function of the first degree of the form:

f(x)= m*x + b or y= m*x + b

where m is the slope of the function and b is the ordinate at the the y-intercept.

In this case height=m*time + b

Given two points of the line, point 1 (x1, y1) and point 2 (x2, y2), we can find the equation of the line or linear function.

You must first find the slope of the line using the expression:

[tex]m=\frac{y2 - y1}{x2 - x1}[/tex]

In this case you know the two points are (x1, y1)= (10,17) and (x2, y2)=(21,12.6)

So the slope is:

[tex]m=\frac{12.6-17}{21-10}[/tex]

m= -0.4

Now you find the value of b, replacing m in the equation, the values ​​of x and y by the values ​​of the coordinates of one of the points and solving for b to obtain its value.

Replacing (x1, y1)= (10,17) and m=-0.4 in the expresion y=m*x+b:

17= -0.4*10 + b

and solving you get:

17= -4 + b

17 + 4= b

21= b

So: height= -0.4*time + 21 where the height is expressed in centimeters and the time in hours.

To calculate the height of the candle after 14 hours, you simply replace the time by 14:

height= -0.4*14 + 21

height= 15.4

The height of the candle after 14 hours is 15.4 centimeters

1. Find the value of y using the following diagram. (The angles are vertical angles)
74+5
47

Answers

Answer:  brainliest please

Part 1) Option D

Part 2) Option C

Step-by-step explanation:

we know that

In a Rhombus

Opposite angles are congruent, and consecutive angles are supplementary. All sides are congruent by definition. The diagonals bisect the angles

Part 1) What is the measure of angle  ?

-----> remember that the diagonals bisect the angles

Part 2) What is the measure of angle  ?

Remember that

In a rhombus consecutive angles are supplementary

so

The measure of angle  is equal to the measure of angle T divided by

Step-by-step explanation:

Find the requested information based on the given facts.
The base salary is $48,000.
The commission rate is 9% of the total sales of $256,000.
The fee is $7.25 per transaction for 325 transactions.
Determine the total earnings.
Enter the correct answer in the box.

Answers

Answer:

TOTAL EARNINGS: 73,396.25

Step-by-step explanation:

9% of 256,00 is 23,040

Add 48,000

7.25*325 is 2356.25

Add all together

23,040+48,000+2,356.25

you get

73396.25

TOTAL EARNINGS: 73,396.25

45 POINTS! If l is parallel to m, identify the angle pair as congruent or supplementary. Justify your reasoning by classifying the angle pair.

Answers

Answer:

10.) suplementary  because they both make 180

11.) Congurent because they are vertical angles because they are on different sides of the line.

12.) congruent because they both are on the same line and are linear

13.) Supplementary beacuse the two angle create 180 degrees

14.) Suplementary beacuse the two angle create 180 degrees and are linear

Step-by-step explanation:

the value of (2^-1/ 10^-1)^2

Answers

Answer:

= 25

Step-by-step explanation:

Answer:

25

Step-by-step explanation:

[tex]a^{-m} = \frac{1}{a^{m}}\\\\\\frac{1}{a^{-m}}=a^{m}\\\\(\frac{2^{-1}}{10^{-1}})^{2}=(2^{-1}*\frac{1}{10^{-1}})^{2}\\\\=(\frac{1}{2}*10)^{2}\\\\=(5)^{2}\\\\=25[/tex]

(-3, 2) (-4, 5)
Slope:
m= ll m=
m= ⊥ m=

Please help me with this
I honestly don't get it
We are supposed to find the slope or something idk

Answers

pls double check these im not super sure

im p sure the first one with || means parallel n second one means perpendicular lol

Answer:

m= ll m= -1/3

m= ⊥ m= 3

Step-by-step explanation:

uh regular slope

m = -1/3

parallel - slope is same

perpendicular - product of slopes is -1

The answer for this is -1/3

what is 2+2 i nede hep

Answers

People don't actually know this, but it isn't 4, it's 22. If Base+ball is Baseball, then 2+2 is 22

I hope this helps!

Give the coordinates of the image for each point named
under the translation CC'.
10. Point F
11. Point D
12. Point E
13. Point

Answers

Answer:

f=(2,3)

D=(3,-1)

E=(-2,0)

Find the area of the shape shown in Figure 1 and type your answer into the box below in units squared.

Answers

Answer:

24 units^2

Step-by-step explanation:

I don't know the units but that would be the answer

Rewrite 68% as a decimal, a fraction and a
simplified
ratio?

Answers

Answer:

0.68, 68/100 or 17/25, and 17:25

Step-by-step explanation:

A sequence is defined by the function f(n) - f(n-1)-2 where n represents the number of the term for n>1 and f(1) = 2 what are the first four terms of the sequence? ​

Answers

Answer:

2

Step-by-step explanation:

a line of slope of a 3/4 and passes through two points (-5,4) which is the equation of the line ​

Answers

Answer:

y=-3/4x+0.5

Step-by-step explanation:

PLEASE HELPPPP
The sum of John and Davis ages is 63. Davis is six years less then twice John's age. How old is Dave? (The bigger number)

Answers

Answer: 40 years old

Explanation:
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