User Account

All Pages

Find the macaulay duration

Assignment Help Accounting Basics
Reference no: EM131626255

Question: Find the Macaulay duration and the modified duration of a 20-year, 10% corporate bond priced to yield 8%. According to the modified duration of this bond, how much of a price change would this bond incur if market yields rose to 9%? Using annual compounding, calculate the price of this bond in one year if rates do rise to 9%. How does this price change compare to that predicted by the modified duration? Explain the difference.

Reference no: EM131626255

Questions Cloud

Unable to make prudent purchasing decisions : Vulnerable groups are consumers who, due to personal or situational influences, are unable to make prudent purchasing decisions.
Find the effective duration of the given bond : An investor wants to find the duration of a 25-year, 6% semiannual-pay, noncallable bond that's currently priced in the market at $882.72, to yield 7%.
Design and develop a website : COIT 20268 - Responsive Web Design (RWD) Assignment. Design and develop a website. The goal is to allow potential visitors to obtain overview of museum layout
Controllable factors to optimize the yield of process : Determine levels of controllable factors to optimize the yield of a process or minimize the variation of a response variable.
Find the macaulay duration : Find the Macaulay duration and the modified duration of a 20-year, 10% corporate bond priced to yield 8%. According to the modified duration of this bond.
Example of human technology interface : Consider an example of human technology interface in healthcare from clinical technology to administrative or electronic data.
Demonstrate for each of two applications they are vulnerable : Demonstrate for each of the two applications they are vulnerable to this attack. You need to show explicitly the attack you use and demonstrate the impact of th
Keeping in mind the constraints of perfect competition : Keeping in mind the constraints of perfect competition,
What a democratice-capitalistic society : Explain what a democratice-capitalistic society is and the impact it has on the compensation practices in the US.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd