Assume a corporate bond pays a 5 percent coupon and matures in ten years. What will be the change in the current price of this bond if market interest rates increase from 5 to 5.5 percent?

Answers

Answer 1

The change in the current price of the bond when the market interest rates increase from 5% to 5.5% is a fall in the price of the bond.

What happens to bond prices with increased market interest rates?

The attractiveness of bonds occurs when the interest rates fall.  This fall drives up demand for bonds with fixed interest rates and the increasing demand causes bond prices to rise.

This implies that when interest rates rise, investors do not prefer the lower fixed interest rate paid by a bond.  The reduced demand for bonds results in their declining prices.

Thus, when interest rates rise, bond prices fall and when interest rates fall, bond prices rise.

Learn more about bonds at brainly.com/question/25596583


Related Questions

Determine whether equations are parallel perpendicular or neither For Y=5x-1 And Y=-1/5x+1

Answers

Answer:

Perpendicular

Step-by-step explanation:

The slope is the negative reciporal of one another

5x = -1x/5

University of Kentucky's Field goal kicker made 25 out of 28 field goals last season. What was his percentage of accuracy?

I'm not so smart okay -_-

Answers

percentage of accuracy: 89.3%

[tex]\sf accuracy = \dfrac{goals \ made}{total \ goals \ attempted}[/tex]

goals made : 25total goals attempted : 28

[tex]\hookrightarrow \sf accuracy = \dfrac{25}{28} *100[/tex]

[tex]\hookrightarrow \sf accuracy = 89.2857 \%[/tex]

[tex]\hookrightarrow \sf accuracy = 89.3 \%[/tex]

on a certain Home Mortgage, there is a monthly payment of $9.43 for every $1,000 that is borrowed. What is the monthly payment on this type of loan if $135,000 is borrowed? NO LINKS!!! ​

Answers

Answer:  $1273.05

Work Shown:

x/(135,000) = (9.43)/(1000)

x = 135,000*(9.43/1000)

x = 1273.05

Solve using ratios as ratios remain same

Let the amount be n

[tex]\\ \rm\Rrightarrow \dfrac{9.43}{1000}=\dfrac{n}{135000}[/tex]

[tex]\\ \rm\Rrightarrow 0.00943=n/135000[/tex]

[tex]\\ \rm\Rrightarrow n=0.00943(135000)[/tex]

[tex]\\ \rm\Rrightarrow n=1273.05[/tex]

Find the value of x. The diagram is not to scale.
110°
57°

Answers

Answer:

you have to show the diagram ...

Step-by-step explanation:

Is the number 3 squared rational?

Answers

Yes The square of any rational number is rational.
No it isn’t


there is always an odd exponent. So it could not have been made by squaring a rational number.This means that the value that was squared to make 2 (ie the square root of 2) cannot be a rational number. In other words, the square root of 2 is irrational.

What is the net decimal equivalent if 40%, 30% and 15% discounts were applied

Answers

Answer:

Well you can’t really stack these percentages discounts.

Assuming it’s in the same order as the problem then

We can find the decimal equivalent by just dividing.

So think of it like this way.

Your getting 40 percent off, the original price.
The original price of course is a 100 percent since its the one and only price.

When your taking 0.4 percent off then its taking off 0.4 from the 1.00

So you have 0.6.

Your now paying 60 percent of the price.

Now the 30 percent.
Same thing except this times its 0.6.

Now 30 percent of 60 is 18 percent and then subtract that by 0.6 which is 0.42

Now for the final 15 percent
Same thing except this time its 0.15

15 percent of 0.42 is 6.3 percent, subtract that by 0.42 is 0.357

After the discounts were applied you’d only have to pay 0.357 or 35.7%

In order to find the total amount of discounts just subtract the amount we have to pay by the original which was 100 %. 100 - 35.7 = 64.3

Final net percentage is equivalent 64.3%

QUICKLY PLEASE!!
18POINTS!
6(3p – 2) = 24

Answers

Answer:

p= 2

Step-by-step explanation:

So first you want to distribute the 6 to 3p-2 which basically means multiply

6(3p – 2) = 24

6 times 3p is 18 and 6 time -2 is -12

* remember a negative and a positive equal a negative*

18p-12=24

you want to get 18p by itself, so in order to do that you can add 12 to both sides because if you add 12 on the left side it cancels out -12 and whatever you do to one side you have to do it to the other so add 12 to 24 which is 36

18p = 36

since you want to get p by itself you divide p on both sides so it can cancel out 18 and 36/18 is 2

so p = 2

if you are wondering why i divide it and not subtract or add it is because 18 and p are stuck together so you have to divide but if it  was like 18 + p you can subtract because 18 and p arent together

Find the area of the figure. (Sides meet at right angles.)
2 ft
2 ft
5 ft
ft
8 ft
Bft
4 ft
8 ft

Answers

Answer:

44ft

Step-by-step explanation:

To find the answer, you need to first break down your shape. We can see that the 2 sides are identical so we can just multiply the area of on eof the sides by 2. The 2 sides equal 20 in all. Now lets look at the last section. To find an unknown side, we need to subract the 2 known sides. 8-5=3.   3x8=24

24+20=44

Hope this helps.

Answer:

44 ft²

Step-by-step explanation:

A1 = 2(5 x 2) = 20

A2 = 8 x 3 = 24

total = 20 + 24

      = 44 ft²

1. 5(n-2) +9 =

2. n + 8n² - 17 =

Answers

Answer:

1. n = 0.2

2. n ≈ 1.396577191 or n ≈ -1.521577191

Step-by-step explanation:

Q1:

[tex]5(n-2)+9 = 0[/tex]

[tex]5n-10 = -9[/tex]

[tex]5n = 1[/tex]

[tex]n = 0.2[/tex]

Q2:

Use the quadratic formula on your calculator.

joey and his 4 friends went out to eat they decided to split the bill evenly Each person paid 11.13. What was the total bill? write an equation you could use to solve this equation. Use d as your variable.​

Answers

Answer:

$44.52 is the total bill, d = 11.13 × 4

What is the solution to the linear equation?
2 + p = 1/3 + 2/3
Op=1
Op=2
Op=8
O p = 10

Answers

Answer:

-1

2+p=1/3+2/3

first do the fraction

2+p=1

collect like terms

p=1-2

p=-1

select one card at random from the deck let A be the event that the randomly select a card is a club and let B be the event that the card is a five

Answers

Answer:

1 and 52 chance

Step-by-step explanation:

PLEASE HELP ASAP

Which parent function(s) do not have any negative y values? *

rational
quadratic
linear
exponential
square root
absolute value
cubic

Answers

Answer:

the answer is rational , absolute value, cubic

Suppose you obtain a $1300 T note with a 9% annual rate paid monthly with Matt Trinity in six years how much interest will be paid to you each month

Answers

Answer:

2

Step-by-step explanation:

2

https://brainly.com/question/5720183

From: rejkjavik

Ambitious

4.2K answers

10.3M people helped

Answer: simple interest  = $9.75

Step-by-step explanation:

given data:

Principle = $1300

annual rate  = 9%  

time = 6 year =

we know that simple interest is given as

Simple interest  

FOR ABOVE QUESTION

Time is 1 month

simple interest  

simple interest  = $9.75

A polynomial can have a variable under a square root.
True
False

Answers

Answer:

it's could be False i'm not sure

give the value for b in terms of a and c from the following question -2(8a+10b)=6c

Answers

Answer:

b = (-4/5)a - (3/10)c

--------------

-2(8a + 10b) = 6c

8a + 10b = -3c

10b = -8a - 3c

b = (-8/10)a - (3/10)c

b = (-4/5)a - (3/10)c

The answer above is correct my dude,

Can someone help me please!

Answers

The Answer is:

154 yeah

If 2x = 14, find the value of 6 - 7x

Answers

Answer:

-43

Step-by-step explanation:

x=7

Answer:

The Answer Is 49.

Step-by-step explanation:

2x = 14. 2x  means 2 x ??? = 14. but you can find what "X" is you can find it out by divideing, 2 divided by 14 is 7 so X = 7. To find 6 - 7x you know that is means 6 - (7 x 7). 7 x 7 is 49, 6 - 49 is -42. You answer is -43 and X means 7.

can a negative number be a real number

Answers

The real numbers include the positive and negative integers and fractions (or rational numbers) and also the irrational numbers.

Do these ratios form a proportion?

$30 per 46 pounds

$15 per 23 pounds

Yes or No

Answers

Particularly yes

Step-by-step explanation:

$30 per 46 and 30÷ 2 is 15 while 46÷2 is 23

therefore it is yes

Help math math math

Answers

Answer:

A. Yes -- Aricka drew the line correctly because the line is decreasing with data points above and below the trend line.

Explanation:

This is what is known as having a line of best fit. The data points should at least nearly be evenly distributed on both sides of the line for it to be a good line of best fit. You should also make sure that you have at least a few points TOUCHING the line. This is a majour part of having a line of best fit.

I am joyous to assist you at any time.

Answer:

A. Yes -- Aricka drew the line correctly because the line is decreasing with data points above and below the trend line. :)

Step-by-step explanation:

The fees for a computer course is increased from $ 30
to $ 36 per month. Find the percentage increase in
the fee
(a).15&%
(b).20%
(c).25%
(d).30%

Answers

Given :-

Original price = $ 30Increased price = $36

[tex] \\ \\ [/tex]

To find:-

Increased percentage

[tex] \\ \\ [/tex]

First let's find increase in price :-

Increase = Increased price - Original priceIncrease = 36 - 30Increase = $6

[tex] \\ [/tex]

[tex] \boxed{ \rm increase\% = \frac{increase}{original \: price} \times 100 }[/tex]

[tex] \\ \\ [/tex]

So:-

[tex] \\ [/tex]

[tex] \dashrightarrow \rm increase\% = \sf \dfrac{increase}{original \: price} \times 100 \\ [/tex]

[tex] \\ \\ [/tex]

[tex] \dashrightarrow \rm increase\% = \sf \dfrac{6}{30} \times 100 \\ [/tex]

[tex] \\ \\ [/tex]

[tex] \dashrightarrow \rm increase\% = \sf \dfrac{6}{3\cancel0} \times 10\cancel0 \\ [/tex]

[tex] \\ \\ [/tex]

[tex] \dashrightarrow \rm increase\% = \sf \dfrac{6}{3} \times 10 \\ [/tex]

[tex] \\ \\ [/tex]

[tex] \dashrightarrow \rm increase\% = \sf \cancel\dfrac{6}{3} \times 10 \\ [/tex]

[tex] \\ \\ [/tex]

[tex] \dashrightarrow \rm increase\% = \sf 2\times 10 \\ [/tex]

[tex] \\ \\ [/tex]

[tex] \dashrightarrow \bf increase\% = 20\%[/tex]

Hello Can Someone Please Answer This Question I Will Mark You The Brainliest

Answers

Answer:

It's A 310 cm 2

Step-by-step explanation:

The polynomial equation x^(3)-x=0 has exactly one positive root and exactly one negative real root. Please select the best answer from the choices provided T F

Answers

Answer: T

Step-by-step explanation:

The Ride for Health Bicycle Club has chosen a 33-mile course for this Saturday's ride. If the riders plan on averaging 11 mph while they are riding, and they have a 1-hour lunch break planned, how long will it take them to complete the trip?

Answers

Answer:

4 hours

Step-by-step explanation:

33/11 = 3 hours

Plus 1-hour lunch break

Total is 4 hours

the difference between a number and 4.5 is greater than 8

Answers

Answer:

See below.

Step-by-step explanation:

n-4.5>8

 +4.5 +4.5

n>12.5

-hope it helps

33
Which fraction is equivalent to 4?
A
1
4
B
8
С
4
4
D
4
1

Answers

The correct answer is D 1
-
4

7
Of the pets in the pet show, are cats of the cats are calico cats.
12

What fraction of the pets are calico cats?
Enter the fraction in simplest form.
of the pets are calico cats.

Answers

Answer:

7/12

Step-by-step explanation:

Number of calico cats : 7

Number of total cats : 12

Fraction of calico cats

No. of calico cats / No. of total cats7/12

Convert ; (a) 125% to decimal (b) 0.75 to percentage​

Answers

Answer:

125/100=0.125

(b) 7/10+5/100=75/100=75%

Answer:

a. 1.25

b. 75%

Step-by-step explanation:

Percentage to Decimal = Divide by 100

Decimal to Percentage = Multiply by 100

Which of these is the equation of a line with y-intercept (0,2) and slope 1/3

Answers

Answer: A

Step-by-step explanation:

The answer to this question is A. We know this because it is in slope-intercept form, there m is the slope and b is the y-intercept. In A, you can see that 1/3 is m and b is 2. This proves that A is the correct answer.

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