Calculate the bond macaulay duration

Assignment Help Financial Management
Reference no: EM132019210

A company just issued a bond with the following characteristics:

Maturity = 3 years

Coupon rate = 8%

Face value = $1,000

YTM = 10%

Interest is paid annually and the bond is noncallable.

Calculate the bond’s Macaulay duration? Round "Present value" to 2 decimal places and "Duration" to 4 decimal place.?

Calculate the bond’s modified duration.

Assuming the bond’s YTM goes from 10% to 9.5%, calculate an estimate of the price change without considering convexity

Calculate the convexity of the bond.

Reference no: EM132019210

Questions Cloud

What is the minimum acceptable total revenue from the order : what is the minimum acceptable total revenue from the order?
Analyze how application lends itself to a solution : Analyze how application lends itself to a solution that is superior to that offered by one of the ethical theories that you did not select
The required rates of return on individual securities : The security market line is equation that shows the relationship between risk as measured by beta and the required rates of return on individual securities.
Discuss how that section of the constitution relates to any : Discuss how this section of the Constitution or its amendments both limit and protect business in general.
Calculate the bond macaulay duration : Calculate the bond’s Macaulay duration? Calculate the bond’s modified duration
What is your understanding of nursing as emerging profession : What is your understanding of nursing as an emerging profession, and how does this understanding relate to the development of the advanced practice nursing.
Calculate wacc using market-value weights : Calculate Pawlson's WACC using market-value weights.
Define evolution of specific advanced nursing practice roles : Why is it important to understand the history of the evolution of specific advanced nursing practice roles? What difference does this history make to you.
The initial investment to fund an acquisition : An additional equity investment by the sponsor that is planned to be made after the initial investment to fund an acquisition by the LBO target company

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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