Calculate the duration of bond

Assignment Help Financial Management

Reference no: EM131923919

A five (5) year Government bond with an annual coupon of 15% which is paid semi-annually and a face value of GH¢1000. The current yield to maturity is 16%. Calculate the duration of the bond. What does this mean? b. A $1000 Eurobond pays coupon of 12%. If the current market price of this bond is $850.70, what is the yield of this bond?

Reference no: EM131923919

Questions Cloud

Would you advice the mining company to lease the asset : Assume depreciation is on straight line basis and lease rentals are tax deductible. Would you advice the mining company to lease the asset?

Impairment of receivables to users of financial statements : Explain the usefulness of the raising of an allowance for impairment of receivables to users of financial statements.

What type of futures contract would hedge the risk : what type of futures contract would hedge the risk? what would our natural position look like?

Changed its capital structure to debt and equity : What would be SSC's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity?

Calculate the duration of bond : Calculate the duration of the bond. What does this mean?

What will be its stock price the recapitalization : Assuming that the company maintains the same payout ratio, what will be its stock price following the recapitalization?

Adopted proposed change in capital structure : What would be the company's new WACC if it adopted the proposed change in capital structure?

Financial leverage effects : FINANCIAL LEVERAGE EFFECTS Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt.

What is your estimate about the irr of project : For what discount rates would Lepton accept project? For what discount rates would Lepton reject this project? What’s your estimate about the IRR of project?

User Account

All Pages