Find the duration of a 3-year bond

Assignment Help Finance Basics
Reference no: EM132491495

Find the duration of a 3-year bond with annual coupon payments of $80 and a par value of $1,000. The current market price of the bond is $950.25. If the YTM of the bond dropped by 1%, what would happen to the bond price?

Reference no: EM132491495

Questions Cloud

Expected share price next year : The common stock of Say Cheese, Inc. offers an expected total return of 9.2 percent. The last annual dividend was $2.10 a share.
What are the steps to conducting tax research : What are the steps to conducting tax research in preparing for the audit? What are a tax practitioner's responsibilities when providing advice?
What barriers do think the decision-makers face : What tools or processes do you think the decision-makers could have used to avoid the bad decision? Be specific about why you think the tools
Explaining each of the security recommendations : Using WORD, write a brief paper of 200-300 words explaining each of these security recommendations. Do you agree or disagree with these recommendations.
Find the duration of a 3-year bond : Find the duration of a 3-year bond with annual coupon payments of $80 and a par value of $1,000. The current market price of the bond is $950.25.
What lesson learned from event from an ethical perspective : What would you have done if you determined that the revised probability of failure was higher than for the original design, but still within the range of permit
What is the price of a ten year bond : What is the price of a $200,000 ten year bond that was issued two years ago and has eight years to run before the bonds maturity date?
Determine the capital budgeting decision : Determine the Cost of capital, The capital Budgeting Decision, Capital Markets. Write a reflection about what you have learned in this module.
Describe the contents of a data warehouse : Describe the contents of a data warehouse typical to an online retailer, emphasizing sources (transactional system, supply chain management system, etc.)

Reviews

Write a Review

Finance Basics Questions & Answers

  Rarketable security both for long-term and shorten reasons

What are some of the advantages and disadvantages of holding marketable security both for long-term and shorten reasons?

  If the fed decides to sell treasury securities

If the Fed decides to sell Treasury securities, does the money supply increase, decrease, or remain unchanged? Explain why

  Calculate the annual compound growth rate of the house price

Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2007). (Round the number of years to the whole number). Please show your work.

  Consider a bank with the following balance sheet what is

consider a bank with the following balance sheetassets millionsliabilities millionsreserves35zero-interest

  What primary care rate will families first propose

Each primary care physician can handle about 3,000 patient visits per year, for which he or she is paid $180,000. What primary care rate (PMPM) will Families First propose to ABC Company?

  Why sue is resident or not based on definition of resident

Sue was born in Australia and remained in Australia until completing her tertiary studies. Sue then decided to leave Australia for an unspecified period of time

  Perform exploratory data analysis on the relevant variables

Perform exploratory data analysis on the relevant variables

  What is the bank reserve position

A bank has $20,000 in reserves, $90,000 in bank loans, and $150,000 of deposits. If the reserve requirement is 10 percent, what is the bank's reserve position?

  Determining the state lottery

Assume that you just won the state lottery. Your prize can be taken either in form of $40,000 at the end of each of the next 25 years (i.e., $1 million over 25 years) or as a lump sum of $500,000 paid immediately.

  Describe the roles and the basic relationships

Describe the roles and the basic relationships among the major parties in a corporation-stockholders, board of directors, and managers. How are corporate owners rewarded for the risks they take?

  The replacement of an existing machine

Holliday Manufacturing is considering the replacement of an existing machine

  Argument for plotting a centered moving average

What is the argument for plotting a centered moving average centered over the time period in the calculation rather than plotting it at the end of the time period?

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