Bonds macaulay duration and modified duration

Assignment Help Finance Basics
Reference no: EM131478398

You are evaluating an investment in an annual bond with exactly 4 yars to maturity. the bonds coupon rate is 10% and the bonds current YTM is 13%.

Calculate the bonds Macaulay duration and modified duration.

Reference no: EM131478398

Questions Cloud

Evidence-based and non-evidence-based treatment : Compare at least one evidence-based and one non-evidence-based treatment option for the diagnosis.
Discuss how systemic risk differs from systematic risk : Discuss the problem of assessing systemic risk when only the risk of individual banks can be determined.
Determining the replacement analysis : St. Johns River Shipyard's welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old
Define the regulatory approach : Regulators can only constrain the behavior of individual banks through incentives such as capital and liquidity requirements but they cannot affect systemic.
Bonds macaulay duration and modified duration : Calculate the bonds Macaulay duration and modified duration.
Discuss the importance of framing or mental accounting : Discuss the importance of framing or mental accounting from a behavioral risk perspective and its relationship to Benartzi and Thaler's explanation.
Geometric average growth rate : What if you use the geometric average growth rate?
Explain implication of familiarity bias for asset allocation : Explain whether the absence of an arbitrage opportunity necessarily implies that markets are efficient.
What are the implications for fpl : How do signaling, taxes, and transaction costs affect dividend policy? What are the implications for FPL?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd