Calculate the duration of the bond

Assignment Help Finance Basics
Reference no: EM133061743

Given a two-year, semi annual coupon paying bond with face value of $1000, coupon of 5% per annum and yield of 6% per annum:

-Calculate the duration of the bond.

-Use the duration measure to estimate the change expected in the bond price if the yield changes to 5.5% per annum.

Reference no: EM133061743

Questions Cloud

Civil service reform act : Explain what civil service looks like since the Civil Service Reform Act of 1978.
Classical criminology : People have free will to choose criminal or conventional behaviors, people choose to commit crime for reasons of greed or personal need,
Public policy as public relations : Describe different contexts that drive the public policy and if government has been involved in any way.
What is the purchase price of the bond : A $5000, 3% bond is purchased 4 years and six months before maturity to yield 5% compounded semi-annually. If the bond interest is payable semiannually, what is
Calculate the duration of the bond : Given a two-year, semi annual coupon paying bond with face value of $1000, coupon of 5% per annum and yield of 6% per annum:
How much is Bramble May budgeted Accounts Receivable : Operating expenses are: Salaries, $50100; Depreciation, $12500; Rent, $14000; and Utilities, $13500. How much is Bramble May budgeted Accounts Receivable
Capital budgeting project selection assignment : For the following two projects, determine the Payback Period Discounted Payback Net Present Value Profitability Index
Credit history and reports : 1.There are three main credit reporting bureaus -- Equifax, Experian, and TransUnion. How frequently can you request and receive a free credit report from each
Analyze the price of the investment to stock : Propose why Meta (Facebook) is a solid investment and who should invest in it.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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