Calculate the bonds modified duration

Assignment Help Accounting Basics
Reference no: EM132753624

Question: Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in bond's YTM is 10 percent and interest is paid semi-annually.

a. Calculate this bond's modified duration.

b. Assuming the bond's YTM goes from 10 percent to 9.5 percent, calculate an es price change

Reference no: EM132753624

Questions Cloud

Calculate the ratio of heat flow in the cylinder : 1. The temperature distribution associated with radial conduction through a sphere is represented by
Prepare a message replying back to your boss : Prepare a message replying back to your boss - receive their shipment and now it's Monday making it three days late. I don't know whose fault it is but until
Microscope diameter measurement of specimen of virus : A cable of 10 mm outside is to be laid in an atmosphere of 25 degree Celsius (h = 12.5 W/m2 degree) and its surface temperature is likely to be 75 degree Celsiu
Describe a biological process : Describe a biological process carried out by all organisms that suggests they share a common origin
Calculate the bonds modified duration : Calculate the Macaulay duration of an 8 percent, $1,000 par bond that matures in bond's YTM is 10 percent and interest is paid semi-annually.
Calculate the labor rate and the labor efficiency variance : At Macaron, the standard quantity of labor is 24 hours per refrigeration unit. The standard wage rate is $36. In July, the company produced 86 refrigeration.
Discuss the inferences drawn from the numbers : Discuss the inferences drawn from the numbers collected and provide insight into the impact of the numbers on the American economy in a response
Compare and contrast the dyb and gyb strategies : Compare and contrast the DYB and GYB strategies in terms of the ability to sustain a business in the marketplace over the long term, to be competitive against
What do you estimate is firm current market capitalisation : An analyst forecasts that a firm's nominal Equity Free Cash Flow will be $1 million next year and is expected to grow at the country's nominal GDP growth rate.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Syringe pumps often fail because reagents adhere to the

syringe pumps often fail because reagents adhere to the ceramic piston and deteriorate the seal. trident chemical

  Calculate the average accounts receivable

Calculate the average accounts receivable, Calculate the accounts receivable turnover ratio

  Prepare the capital-budgeting analysis

With the help of the entire team except the person chosen to be Sharma, Rossi should prepare the capital-budgeting analysis used for her first meeting.

  Prepare the statement of cash flows for the year ended

Assume the same facts as CP12- 4, except for additional data item (a) and the income statement. Instead of item (a) from CP12- 4, assume that the company bought new golf clubs for $ 3,000 cash and sold existing clubs for $ 1,000 cash. The clubs that ..

  Warner company has 25000 shares of common stock outstanding

on january 4 2001 larsen company purchased 5000 shares of warner company for 59500 plus a brokers fee of 1000. warner

  What does the historical cost of a plant asset include

Write a 500-1,000-word essay describing what plant assets are and include examples. What does the historical cost of a plant asset include

  Prepare the potential entry for the given items

Assume that the labor will be performed by contractors and that the cost below include the labor charges. Prepare the potential entry for the items above

  Nebraska mining company mines an iron ore called alpha

nebraska mining company mines an iron ore called alpha. during the month of december 400000 tons of alpha were mined

  What is the taxable income

The beginning of that same year the company bought essential new equipment for $130,000. This equipment has a CCA rate of 30%.

  Unusual occurrence in thorpe line of business

The loss from the fire was an infrequent but not unusual occurrence in Thorpe's line of business. Thorpe's December 31, 2017

  Which of the true if a company can accept a special order

which of the true if a company can accept a special order without affecting its regular sales and is within plant

  Discuss the major factors in todays economy

Discuss the major factors in todays economy that have made the need for independent audits much greater than it was 50 years ago

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