Find the price-yield and duration of 3 year

Assignment Help Finance Basics
Reference no: EM132630506

You have the following information about bonds trading in the market with annual coupons:

Maturity: 1 year Coupon rate: 0% Yield to Maturity: 6%

Maturity: 2 year Coupon rate: 5% Yield to Maturity: 7.95%

Maturity: 3 year Coupon rate: 10% Yield to Maturity: 9.74%

Find the price, yield and duration of 3 year bonds with face value $ 100,000 and 5% coupon paid annually.

Reference no: EM132630506

Questions Cloud

Federalist representative democracy : Federalist representative democracy requires both personal responsibility-social responsibility of citizens through personal involvement in democratic process
How effectively one organization engages employees : How effectively one organization engages employees comparing and contrasting its efforts to the two best practices; support your description
Journalize the july transactions : July 1 Purchased used truck for $9,100, paying $4,200 cash and the balance on account. Journalize the July transactions
What is the interest amount on the loan : If you take out a loan for $1,500 and expect to repay $1,700 over 12 months, what is the Interest amount on the loan?
Find the price-yield and duration of 3 year : Find the price, yield and duration of 3 year bonds with face value $ 100,000 and 5% coupon paid annually.
Should states continue to allow ballot initiatives : Determine whether people turn out to vote in U.S. elections? Should states continue to allow ballot initiatives and other forms of direct democracy?
Who is the author trying to reach : Name of the article and its author Is the article made by a public or private entity? Who is the author trying to reach (audience)?
Exchange rates in the spot and forward exchange markets : Consider the following exchange rates in the spot and forward exchange markets.
Realm of organization management is informal grapevine : One of the most interesting items in the communication realm of organization management is the informal grapevine.

Reviews

Write a Review

Finance Basics Questions & Answers

  Your production line when correctly adjusted fills

your production line when correctly adjusted fills containers with an average of 12 ounces of soda per can with a

  Volcan real estate company was founded 25 years ago by the

volcan real estate company was founded 25 years ago by the current ceo john volcan. the company purchases real estate

  Mission of maximizing shareholder value

With the mission of maximizing shareholder value in mind, how could the health care financial Manager help to motivate a large group of employees to exceptional performance? Explain in detail.

  Opportunity cost of capital

1. The opportunity cost of capital is 10%. Which stock has the greater value?

  What is the annual percentage rate on loan

. What is the Annual Percentage Rate (APR) (Nominal rate) on this loan? What is the Effective Annual Rate (EAR)?

  Calculate the beta and expected rate of return

Calculate the beta and expected rate of return for the following portfolio, based on a Treasury bill yield of 4% and an expected market return of 13%.

  Show what was the return on his portfolio

During the year Lightco returns 10 percent, shineco returns 12 percent, and brightco loses 5 percent. what was the return on his portfolio?

  Clientele effect and signaling content

What is the "Clientele Effect" and "Signaling Content" and how can it affect dividend policy?

  Benefits of insurance and portfolio approach

When is insurance beneficial? Is Insurance ever not beneficial? Explain your answer. Why is the portfolio approach an effective tool to manage risk? Explain your answer.

  What is the price of the bond

The present value of the redemption amount is 5 times the present value of the coupon stream. What is the price of the bond?

  The loan in five equal annual installments of 416100 the

your bank has offered you a 15000 loan. the terms of the loan require you to pay back the loan in five equal annual

  Identify two different stock exchanges in the united states

In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges

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