Compute macaulay and modi?ed durations for the bonds

Assignment Help Business Economics

Reference no: EM13978979

Compute Macaulay and modi?ed durations for the following bonds:

a. a 5-year bond paying annual coupons of 3.322% and selling at par

b. an 8-year bond paying semiannual coupons with a coupon rate of 9% and a yield of 8%

c. a 10-year bond paying annual coupons of 5% with a price of $96 and a maturity value of $100

Hint: You can use the Excel functions Mduration and Duration to calculate the required durations. For c, you will need to use the Excel function to calculate yield before you can calculate Mduration and Duration).

Reference no: EM13978979

Questions Cloud

Continuous dividend-continuously compounded risk-free rate : Suppose a company’s $50 stock pays an 8% continuous dividend and the continuously compounded risk-free rate is 6%. Calculate the following: the price of a prepaid forward contract that expires 1 year from now. the price of a forward contract that exp..

Determine the structure of this compound : When the 2-methoxyethanol was redistilled, a higher-boiling fraction (bp 162 °C) was also recovered. The mass spectrum of this fraction showed the molecular weight to be 134. The IR and NMR spectra are shown here. Determine the structure of this c..

The best drinks company in hayward : As manager of the Best Drinks Company in Hayward, you would like to sell drinks at a booth during the major celebration in the Hayward's Central Park. The following table provides information about the drinks that you will be selling:nYou estimate la..

Give a cost estimate for the project : Create the Gantt chart for the project and paste it in here - Give a cost estimate for the project, without contingencies.

Compute macaulay and modi?ed durations for the bonds : Compute Macaulay and modi?ed durations for the following bonds:

Write a paper on sales and use tax issues : Write a paper on Sales and Use Tax Issues in digital age 4 pages for accounting internship

Compute the effective annual rates : Compute the effective annual rates for the following:

What is present value of his contract if money can earn : Icahn Tackel just signed an $11.5 million, four year contract with an NFL team. He received a signing bonus of $2 million; $1.5 million at the end of year one; $3 million at the end of year two; $3.5 million at the end of year three; and 1.5 million ..

Find the mean and standard deviation : Based on these results, does it appear that accurate voting results can be obtained by asking voters how they acted?

User Account

All Pages