Find macaulay duration-modified duration

Assignment Help Financial Management
Reference no: EM131566589

Consider a U.S. 30-year corporate bond with the following characteristics:

Settlement date: May 5, 2017

Maturity date: March 15, 2047

Coupon: 3.25%

Yield: 4.56%

Frequency: ?

Basis: actual / actual

a-Find Macaulay duration and modified duration. Make sure to show your work.

Reference no: EM131566589

Questions Cloud

Examine the parties and roles involved with letter of credit : Examine the parties and roles involved with a letter of credit. Analyze government programs to finance exports. Analyze tax treaties and purposes.
Calculate expected dividend yield : Assuming investors require a 16% rate of return on their investment, calculate the expected dividend yield.
What caused the sarbanes-oxley act to come into existence : Discuss what caused the Sarbanes-Oxley Act to come into existence, and evaluate the attitudes and behaviors that created the failure of Enron
Explain what you learn about the disclosures : Explain what you learn about the disclosures of your Comcast (NYSE:CMSCA) company relating to Pensions and Post Retirement Benefits
Find macaulay duration-modified duration : Find Macaulay duration and modified duration.
Write a specification for the bars length x in metres : A 5-metre iron bar is to be produced. The bar may not deviate by more than 1 mm from its stated length. Write a specification for the bar's length x in metres.
Provide credit in financial market outside their own country : Assignment: Foreign Investment Decisions- Explain why some financial institutions prefer to provide credit in financial markets outside their own country.
Find optimal risky portfolio : Find optimal risky portfolio. Make sure to provide its expected return, variance, and standard deviation.
Leader fails to delegate responsibilities : What are some of the possible effects if a leader fails to delegate responsibilities amongst other employees

Reviews

Write a Review

Financial Management Questions & Answers

  Assume all put and call options

Assume all put and call options on ABC have the same strike price $K and maturity T.

  Disregard any cross product terms

Suppose 1-year T-bills currently yield 7% and the future inflation rate is expected to be constant at 3.2%per year. What is the real risk-free rate of return, r*? Disregard any cross product terms.

  Fixed manufacturing costs-consumer packaged product

Fred Flintstone has just become the product manager for Yabba Dabba Doo, a consumer packaged product with a retail price of $2.00. Retail margins on the product are 33%, while wholesalers take a 12% margin. Fixed manufacturing costs are $1,800,000. T..

  Compute the net present value of this project

Northwest Industries is considering a project with the following cash flows: Initial Outlay=$2,800,000 After-tax operating cash flows for years 1-4=$850,000 per year, Additional after-tax terminal cash flow at end of Year 4=$125,000 Compute the net p..

  Whats wrong with using payback period

How can options sell for more than their exercise value and whats wrong with using payback period? What should we use instead? Why?

  The break-even point for the entire company is closest

Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $33,500 and variable expenses of $8,940. Product V04P had sales of $54,500 and variable expenses of $31,540. The fixed expenses of the entire c..

  Value of six-month futures contract on treasury bond

Calculate the value of a six-month futures contract on a Treasury bond.

  Exclusive projects-compute the IRR for project

Consider two mutually exclusive projects with the following cash flows: Project S is a 4 year project with initial (time 0) cash outflow of 3000 and time 1 through 4 cash inflows of 1500, 1200, 800 and 300 respectively. Project L is a 4 year project ..

  Based on the exchange rate data sheets

Based on the exchange rate data sheets.

  Business data before using it for the new metro store

What important factors would you want to address in adjusting the similar store's business data before using it for the new metro store?

  What happens when these goals come into conflict

Describe the main goals of the Federal Reserve. What happens when these goals come into conflict?

  Use the appropriate time value of money table

On December 28 each year, you are planning to make a charitable donation of $2880 and are in the 25 percent tax bracket. You are planning to deposit the tax savings in a savings account for the next 13 years at 4 percent, what will be the future valu..

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