NISM XA BOND CASE STUDIES

Case Study 1: Annual Coupon Bond has a coupon of 10% Face Value of 1000 redeemable at a premium of 4% after 5 years. Question 1: What is the current yield ?

Question 2: If the price becomes 1020 after one year what is the YTM now?

Question 3: If Duration Is 3.5 Yrs. After one year what is Modified Duration?

Question 4: What will be the new price of the bond after one year if the interest rate goes down by 40 BPS?

Case Study 2: Semi-Annual Bond has a coupon of 12% Face Value of 100 redeemable at a premium of 5% after 4 years. Question 1: What is the current yield ?

Question 2: If the price become 102 after one year what is the YTM now?

Question 3: If Duration Is 2.67 Yrs. After one year, what will be the Modified Duration?

Question 4: What will be the new price of the bond after one year if the interest rate goes up by 50 BPS?

Case Study 3: Annual Bond has a coupon of 8% Face value of 1000 redeemable at a premium of 4% after 5 years. Question 1: What is the current Yield?

Question 2: If the price becomes 975 after one year what is the YTM now?

Question 3: If Duration is 3.11 years after one year what is Modified Duration?

Question 4: What will be the new price of the bond after one year if the interest rate goes down by 30 BPS?