Calculate the duration if the maturity is in five years

Assignment Help Financial Management

Reference no: EM131844434

Consider a $1,000 face value, Treasury bond with a 10 percent semiannual coupon selling at par with a 10 percent yield to maturity.

I) Calculate the duration if the maturity is in five years

J) Calculate the duration if the maturity is in four years

K) Calculate the duration if the maturity is in three years

L) Plot the relationship between maturity (x-axis) and the duration (y-axis). Be sure to label the y-axis, x-axis, and chart title

In your report, identify and comment on the relationship between duration and maturity.

Reference no: EM131844434

Questions Cloud

Minority identity development process : List and explain the each of the stages in the Minority Identity Development Process

Research communication that occurs in online education : Explain the best approach to research communication that occurs in online education environments.

What will be the interest rates on three-year bond : What will be the interest rates on a 3-year bond, 4-year bond, and 6-year bond?

Explain the strategies or techniques : Describe recent situations when you had to use persuasion to motivate an individual or others on a team. Were you successful in these situations?

Calculate the duration if the maturity is in five years : Calculate the duration if the maturity is in five years. Calculate the duration if the maturity is in three years

Impact of the blockbuster mentality on movies : What do you think of the impact of the blockbuster mentality on movies? Should profit always be the determining factor in producing movie content?

What controls should be placed on blogs : What controls should be placed on blogs, if any? Do you see them as a way of distributing power in the culture between traditional media outlets

Compute the return the firm should earn given level of risk : Compute the return the firm should earn given its level of risk. Compute the return the firm should earn given its level of risk.

Evaluate the given quotations : Please compare, contrast, and evaluate the following 2 quotations: "There is but one set of truths, and these truths are independent of the thought of man."

User Account

All Pages