Consider a two-year bond with a yield to maturity of 7% and an annual coupon rate of 5%. The bond is currently traded at $96.38, and the duration of the bond is 1.95 years. If the bond's yield to maturity changes to 11%, estimate its price change by using its duration.

The modified duration of an 11-year, $1,000 Treasury bond paying a 10 percent semi-annual coupon and selling at par has been estimated at 6.8106 years. What will be the estimated price change on the bond if interest rates increase 0.10 percent (10 basis points)

A $1,000 six-year bond has an 8 percent coupon and contracts to make annual payments of interest. The duration of this bond is 4.99 years. The current interest rate is 8.0 percent. What will be the new price using the duration model if interest rates increase to 8.5 percent? A.$976.90.B.$23.10.C.$977.23.D.-$23.10.E.$1,023.10.

A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has a duration of 11.54 years and a convexity of 192.4. The bond currently sells at a yield to maturity of 8%. Use a financial calculator or spreadsheet to find the price of the bond if its yield to maturity falls to 6% or rises to 13%. What prices for the bond at these new yields would be predicted by the duration rule and the duration-with-convexity rule?

A bond has a modified duration of 6.5 years and an annual convexity of 350. If yields increase by 40 bps, the percentage price change is:A.–2.88%.B.–2.32%.C.–2.04%.

Calculating the duration of a 9% coupon, 8% yield to maturity, 4-year annual payment bond, if the coupon rate decrease and other factors remain the same, the duration for new bond will ? A. 4.1004 years; increase B. 3.5396 years; increase C. 2.2989 years; decrease D. 4.0000 years, increase