Determine the effective duration of the bond

Assignment Help Accounting Basics
Reference no: EM133068093

Question - Consider a 30-year, R1 000 semi-annual pay bond with a 14% coupon and a 13.20% yield to maturity. Based on a change in the yield to maturity of 90 basis points, determine the effective duration of the bond?

Reference no: EM133068093

Questions Cloud

How the collar provides insurance against decreases : -Draw the collar payoffs and explain how the collar provides insurance against decreases in the Yahoo price.
Contract between the two investors : Two investors are going to co-invest in a three-year project whose cost in year 0 is $100M. Investor 1 is a passive investor that finances 90% of the cost of th
How to compute the implied volatility for xom : Explain how to compute the implied volatility for XOM. You can use numbers to illustrate but there is no need to actually do the computation.
What was the amount of the insurance settlement : If the payments are deferred for six years and interest is 3% compounded quarterly, what was the amount of the insurance settlement
Determine the effective duration of the bond : Consider a 30-year, R1 000 semi-annual pay bond with a 14% coupon and a 13.20% yield to maturity. Determine the effective duration of the bond
Identical assets structures and operating characteristics : Consider two firms with identical assets structures and operating characteristics: ABN and RPO. Both companies sell the same product and face the same distribut
Future value-ordinary annuity versus annuity due : What is the future value of a 6%, 5-year ordinary annuity that pays $450 each year? Do not round intermediate calculations. Round your answer to the nearest cen
What is the yield on a 1-year t-bill : An analyst evaluating securities has obtained the following information. The real rate of interest is 2.8% and is expected to remain constant for the next 5 yea
What recommendations can you make regarding the following : Furthermore, she makes a 401(k) contribution of $300 per month and $100 to her IRA montly. What recommendations can you make regarding the following

Reviews

Write a Review

Accounting Basics Questions & Answers

  Access the sec website to locate litigation releases

This assignment is graded for content, correct use of English language and grammar. You are highly encouraged to use the writing centers offered by the University and Mihaylo College before submitting your assignment

  What was total net cash flow per activity

What was total net cash flow per activity: Operations/Production, Investing, Financing and Family Living? What was total net cash flow

  Prepare the journal entries for fountain cosmetics ltd

Prepare the journal entries for Fountain Cosmetics Ltd to account for the above transactions and events and What was the amount of Australian dollars

  Find what are contingent liabilities

Within the financial statements how will management use the financial statements to mitigate their risk as it pertains to their current liabilities?

  Prepare the necessary entries for the given events

Prepare the necessary entries from 1/1/10-2/1/12 for the following events using the fair value method. If no entry is needed, write "No Entry Necessary."

  Compute diluted earnings per share for the year ended

Assuming there are no antidilutive securities, what is the number of shares Feterik should use to compute diluted earnings per share for the year ended December

  Utease corporation has many production plants across the

utease corporation has many production plants across the midwestern united states. a newly opened plant the bellingham

  Physical count of inventories

Describe how the use of the audit software package and a copy of the inventory file data might be helpful to the auditor when observing the physical count of inventories as of a given date and test a sample for accuracy

  Determine whether the project is acceptable or not

Use NPV to determine whether the project is acceptable or not. Show all your calculations and state assumptions (if any) that has been made

  Calculate the return on assets and asset turnover

Each company depreciates its plant assets using the straight-line approach. Calculate the Return on assets and Asset turnover

  How should ABC Corporation allocate the transaction price

ABC Corporation enters into a contract with a customer to sell items for $90,000. How should ABC Corporation allocate the transaction price

  New wave co sold 14000 annual subscriptions of game life

new wave co. sold 14000 annual subscriptions of game life for 51 during december 2012. these new subscribers will

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