Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
(a) A Bank has a bond with a maturity of 4 years. The coupon rate of the bond is 8%, the yield to maturity is 9%, and the face value is 1 million dollars. Interest payment will be paid annually. Determine the price (present value) and duration of the bond.
(b) Predict the change in the bond price if interest rates rise by 100 basis points based on the duration of the bond that you have calculated in part (a).
(c) Calculate the leverage adjusted duration gap (DGAP) if the ratio of total equity to total asset is 0.14, and the duration of all its liabilities is 1.88. (Assume that the Bank holds the bond in part (a) as its only asset)
(d) It is expected that the market interest rate will increase in the future. Assume that the ratio of total equity to total asset, and the duration of all the liabilities are both fixed, compute a new value of duration of all the assets so that immunization can be carried out.
A businesswoman wishes to invest a certain sum of money at the end of every year for five years. The investment will receive 6 percent compounded yearly.
A firm has sales of $1,230, net income of $181, net fixed assets of $548, and current assets of $272. The firm has $90 in inventory. What is the common-size statement value of inventory?
What are some similarities and differences between commercial banks, investment banks, and insurance companies?
Calculate the total fees you will pay on this loan commitment.
High Flyer, Inc., is considering an investment in a new distribution center. High Flyer's CFO anticipated additional earnings before interest and taxes
Assume that stock market returns do not resemble a single-index structure. An investment fund analyzes 40 stocks in order to construct a mean-variance.
Since demand is (elastic/unit elastic/inelastic), and the lot is below capacity, (decreasing price/leaving the price unchanged/increasing price) is the optimal
Why might Hoover have reasonably expected that it would have ended by June 1930? Why did the Depression continue longer than that?
Sheary, Inc., is proposing a rights offering. Presently, there are 800,000 shares outstanding at $58 each. There will be 80,000 new shares offered at $50 each.
if you were a treasurer for a fortune 1000 corporation who has responsibility for investing excess cash balances, which of the following alternatives would you be least likely to select? A commercial paper, B common stock , C bankers acceptanc..
To estimate Missed Places Inc.'s (MP) external financing needs, the CFO needs to figure out how much equity her firm will have at the end of next year.
What is the earnings per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd