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Exam (elaborations)
FP13 Quiz Questions
FP13 Quiz Questions 
 
A 7% coupon bond pays interest semiannually and has a duration of 12 (computed using 
semiannual compounding) and a maturity of 25 years. The bond sells for $1,100 and has a YTM 
of 6.2%. If the YTM is expected to increase by 50 basis points, by what percentage can the price 
of the bond be expected to change? - -12 (0.005/1.031)= -0.0582 
 
You are considering purchase of a stock that is currently selling for $23 and pays a dividend of 
$1.15 per share. The dividend is ex...
Exam (elaborations)
FP13 Quiz Questions |70 Questions with 100% Correct Answers | Updated & Verified | 23 Pages
PopularA 7% coupon bond pays interest semiannually and has a duration of 12 (computed using 
semiannual compounding) and a maturity of 25 years. The bond sells for $1,100 and has a YTM 
of 6.2%. If the YTM is expected to increase by 50 basis points, by what percentage can the price 
of the bond be expected to change? - -12 (0.005/1.031)= -0.0582 
You are considering purchase of a stock that is currently selling for $23 and pays a dividend of 
$1.15 per share. The dividend is expected to grow at a rate ...