User Account

All Pages

Calculate the duration and modified duration of the bond

Assignment Help Financial Accounting
Reference no: EM132943591

Mr.Y is considering launching a bond to raise funds from investors to settle its liability with the Bangladesh government. The interest rate offered by Bangladesh Bank is currently 4%.

Problem a) Calculate the Duration AND Modified Duration of the bond if it has a tenure of 7-years, face value of 1000 taka and makes semi-annual coupon payments of 50 taka.

Problem b) Briefly describe what the value of Duration AND Modified Duration indicates in part (a) ?

Problem c) Bond A is a 9% annual coupon, 4-year bond with a face value of $100. Bond B is a 6% annual coupon, 4-year bond with a face value of $100. The yield curve is flat at 9% per annum. Calculate the current prices for BOTH bonds A&B.

Reference no: EM132943591

Questions Cloud

Explain major historical legacies : Use bullets and small analysis next to each bullet. The key issues must include major historical legacies that have affected the development of India.
How much unrealized gain or loss is to be recognized : How much unrealized gain or loss is to be recognized in the income statement for the current year? What amount should RED initially record
What is the impact on the fed balance sheet : What is the impact on the Fed's balance sheet from a $10 million open market purchase of us treasury securities. Be sure to identify which category of assets an
Principles of japanese management : In recent years, a great deal has been written about the principles of Japanese management, principally because of their ability to increase productivity.
Calculate the duration and modified duration of the bond : Calculate the Duration AND Modified Duration of the bond if it has a tenure of 7-years, face value of 1000 taka and makes semi-annual coupon payments
What basic procedure is used to value a bond : What relationship between the required return and the coupon interest rate will cause a bond to sell at a discount? At a premium? At its par value?
What is the most popular smartphone : 1. Each student will be provided with two questions: a research question and a reflective question. Ideally, each student should have unique questions.
What was the size of the periodic payments : What was the size of the periodic payments? Marcus received a loan of $7,900 at 3.50% compounded monthly. He settled the loan by making periodic
Explain the role of cybersecurity specialists : Explain the role of cybersecurity specialists in a given organization and list the three broad areas in which their activities lie.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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