Calculate the duration of bond

Assignment Help Finance Basics
Reference no: EM132804678

A $1,000 par value bond with a coupon interest rate of 12% per year paid semiannually matures in 2.5 years. The YT< for bonds of similar risk is 12%. Calculate the duration of this bond to 5 decimal place accuracy. Show work.

Reference no: EM132804678

Questions Cloud

Why does the constitution divide power : Why does the Constitution divide power between the state and national governments through enumerated, implied, concurrent, reserved, and denied powers?
How would you define ethical research : How would you define ethical research? What criteria does a research study need to meet in order to be considered ethical? The response must be typed.
What are the power strategies used by western negotiators : What are the power strategies used by Western/US negotiators? How do they differ from power strategies used by Eastern/Asian negotiators?
Price prediction using machine learning approaches : Used Car Price Prediction using Machine Learning Approaches in Various Algorithms Models (Logistic Regression, Decision Tree, Random Forest, SVM, Naïve Bayes
Calculate the duration of bond : The YT
Analyse the conditions for using accounting based earnings : Directors would like to change to measure that item based on the fair value of $70,000. Make a critical analysis between fair value
What is the duration of a three-year bond : (a) What is the duration of a three-year bond with face value equal to $100 that pays a coupon of $3 every year. The yield to maturity (y) of the bond equals 6
What is the current share price-hughes co : If the required return is 9.4 % and the company just paid a $2.73 dividend, what is the current share price?
What amount should be reported as interest income : During 2019, sales revenue totaled P21,200,000, P19,800,000 cash was collected from customers, What amount should be reported as interest income

Reviews

Write a Review

Finance Basics Questions & Answers

  Should the project be accepted or rejected

Compute the PI static for your firm's new project if the appropriate cost of capital is 8 percent.

  What is financial ratio analysis

What is financial ratio analysis? What is various solvency, liquidity and profitability ratios.

  Tracked the averages of? stocks

Suppose a man invested ?$200 at the end of 1900 in each of three funds that tracked the averages of? stocks, bonds, and? cash, respectively.

  Options on the stock of a certain company

The following information is given about options on the stock of a certain company:

  Determine the two most critical financial ratios for you

The following questions need to be answered in at last one paragraph. Determine the two most critical financial ratios for you to monitor at your facility.

  Financial institutions that make decisions

Should tax payers be asked to bailout out financial institutions that make decisions which do not pan out and place the institution in a position of insolvency?

  Budgeted labor for the month

For the coming month, management expects RVUs to be 5,800. What should budgeted labor for the month be?

  Decribe the future performance of a current stock

Can you use a paragraph to decribe the future performance of a current stock "Facebook Inc."?

  To receive a passing grade you must use specific

write a 1000 word essay.to receive a passing grade you must use specific information from at least 3 chapters of

  What is the cash flow for an auto loan-backed security

How do optional call provisions in a securitization differ from that of a call provision in a standard corporate bond questions relate to auto loan-backed.

  How much cash will the company raise net of the spread

The company has 25 million outstanding shares and will issue 5 million new shares. The investment banker charges a 7% spread.

  Can jim and joe be personally held liable to injured parties

In 2000, Jack and his two adult sons, Jim and Joe, created a corporation, Jack & Sons, Inc, with each as a shareholder and director.

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