Calculate the macaulay duration of the bond

Assignment Help Business Management
Reference no: EM131777471

Suppose we have a 2-year bond with semi-annual coupons and an 8% annual coupon rate. Its face value is $1000, and its YTM is 10%. Calculate the Macaulay's Duration of the bond.

Reference no: EM131777471

Questions Cloud

What is drake free cash flow : In order to maintain production at 5,200 laptops, Drake invested in $8,000 in equipment. Drake paid $2,000 in dividends. What is Drake's free cash flow
Microwavable food company to maximize profits : Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.
Suggest key actions that management : Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take
Is joey money-laundering scheme likely to work : Joey Nariz is a narcotics trafficker who has made a career of smuggling cocaine into the United States. Is Joey's money-laundering scheme likely to work
Calculate the macaulay duration of the bond : Its face value is $1000, and its YTM is 10%. Calculate the Macaulay's Duration of the bond.
Explain the meaning of fair trade agricultural products : Explain the meaning of "fair trade" agricultural products. When a business engages in ethical decision-making, what is the first step?
Discuss the account payable audit objectives : Discuss the account payable audit objectives. Discuss situations in which the auditor should use accounts payable confirmations
Who is maximus decimus meridius : In a nightmare come true, you walk in to class one day to see there is a midterm you entirely forgot about.
Are the courts the best forum to resolve business disputes : Are the courts the best forum to resolve business disputes? Choose the forum that you believe is the best forum to resolve business disputes.

Reviews

Write a Review

Business Management Questions & Answers

  Equivalence for decision maker

Suppose a decision makers utility function can be described by U(w)=w^0.5. What is this investment's certainty equivalence for this decision maker?

  Situations in the language of options

Describe each of the following situations in the language of options:(a) Drilling rights to undeveloped heavy crude oil in Northern Alberta. Development and production of the oil is a negative-NPV endeavor.

  Why do some firms use hybrid marketing systems

What factors are important in determining whether a manufacturer should choose a direct or indirect channel? Why do some firms use hybrid marketing systems?

  What is business-society and stakeholders

What is business, society, and stakeholders? How do they relate and interact together? Why should business organization build positive and mutually beneficial relationships across organizational boundaries? Support your answers with examples.

  Content and one process theory of motivation

Compare and contrast one content and one process theory of motivation. In your opinion, why would two people with similar abilities have very different levels of performance? If you were the manager, what would you do and why?

  Cultural competence and organizational challenges

Changing demographics and health disparities challenge our health care leaders, managers, and practitioners. Patti Rose, author of Cultural Competency: For Health Administration and Public Health, provides one explanation for disparities based on th..

  Attorneys litigating divorce and insurance fraud cases

Should congress enact laws requiring ISP's to formally track their customers' activities in an attempt to aid police investigating crimes, attorneys litigating divorce and insurance fraud cases, and the entertainment industry in locating illegally..

  Why do unions exist in some organizations

1. Why do unions exist in some organizations? 2. Do unions play a positive, negative, or neutral role in organizations? Defend your answer.

  Article about ceos and presidents

You have been encouraged by a colleague to write a brief article about "CEOs and presidents" for a management journal. You have decided to compare the leadership styles of three leaders. Using the Library, the Internet, and your course materials, ..

  What are reasons that owners offer their businesses for sale

What are some common reasons that owners offer their businesses for sale? Which of these reasons might a buyer consider to be negative?

  Explain how manufacturing has evolved

1. What are the similarities and differences between lean and agile supply chain strategies? 2. Explain how manufacturing has evolved. 3. What is mass customization? Give examples.

  Social networking sites such as facebook

In 10 years, will Facebook still be popular and so dominant?  What competitors might overtake it? What are some substitute products for social networking sites such as Facebook? How are social media sites being into business and even education?

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