Citibank has an inventory of bbb-rated five-year

Reference no: EM13862052

Citibank has an inventory of BBB-rated five-year 8% coupon bonds, paying semiannually, with a total face value of $196 million. The current market interest rate is 10% per annum.

Calculate the modified duration of these bonds?----------------------

Dear tutor please clarify whether this Duration that need in order to find Modified Duration should calculate based on cash flow or not need it?

Reference no: EM13862052

Questions Cloud

Which project has a better payback period : Which project has a better payback period? Project A requires a $25,000 investment and provides $5,000 per year for 6 years; project B requires an $8,000 project amd provides $4,000 per year for 2 years. Explain the strengths and weakness of this app..

Analyzing a firm''s capital structure : ABC Golf Equipment Corporation has $10 million in assets (where the market value of the assets is equal to the book value of the assets) and no debt. The company's marginal tax rate is currently 35% and has 500,000 shares outstanding. The company's..

How much should alicia put away into an investment each year : What would the present value be if the investment pays you $2,000 at the end of each year for 3 years? How much should Alicia put away into an investment each year if she can get a 6% return a year?

What is the marginal product of high-skilled labor : Illustrate the expected changes in the market for first-class air travel in the US and what type of good does that make the haunted house - What is the marginal product of high-skilled labor?

Citibank has an inventory of bbb-rated five-year : Citibank has an inventory of BBB-rated five-year 8% coupon bonds, paying semiannually, with a total face value of $196 million. The current market interest rate is 10% per annum.

Calculate the return for investing in boeing stock : Using the data in the following table, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately..

Benefits are based on career-average earnings : 1) Defined-benefit plans are favorable to employees for which of the following reasons a) Key employees like to invest the funds that accumulate in their individual accounts. b) Benefits are based on career-average earnings.

National distributors : 12. National Distributors, Inc. would like to issue some new bonds at par. Comparable bonds have a current yield of 8.85 percent, an effective annual yield of 9.15 percent, and a yield to maturity of 9 percent. What coupon rate should National Distri..

Commercial awarenessnt : Please tell us why you are applying to the Reed Graduate Training Scheme? What excites you about working for Reed? Q2 - Commercial Awarenessnt

User Account

All Pages