User Account

All Pages

How different is your answer from the actual price change

Assignment Help Macroeconomics
Reference no: EM13321257

Calculate the duration for a $1,000, 4-year bond with a 4.5 percent annual coupon, currently selling at par. Use the bond"s duration to estimate the percentage change in the bond"s price for a decrease in the market interest rate to 3.5 percent. How different is your answer from the actual price change calculate?

Reference no: EM13321257

Questions Cloud

Derive equation for the torque in terms including resistance : A movable cone fits inside a stationary conical depression. If a torque is applied to the cone, the cone will rotate at a certain speed depending on the angles θ and β, the radius r o, and the viscosity μ of the liquid.
The average time for the 20 missile guidance controls : What will be the average time for the 20 missile guidance controls
Explain the two types of interest rate risk : Define interest rate risk. Explain the two types of interest rate risk. How can an investor with a given holding period use duration to reduce interest rate risk?
Explain when mg is added directly to the beaker of hcl : What quantity of useful work can be obtained when Mg is added directly to the beaker of HCl. How can you harness this reaction to do useful work
How different is your answer from the actual price change : Calculate the duration for a $1,000, 4-year bond with a 4.5 percent annual coupon, currently selling at par. Use the bond"s duration to estimate the percentage change in the bond"s price for a decrease
Discuss how the nec3 form of contract provides stimulus : Discuss how the NEC3 form of contract provides stimulus to good management and compare and contrast this where possible with other forms of contract.
Has the bank set the 5-year rate correctly : A commercial bank made a 5-year term loan at 13 percent. The bank"s economics department forecasts that 1 and 3 years in the future the 2-year interest rate will be 12 percent and 14 percent, respectively
What is the max flowrate which will occur without cavitation : If the water temperature is 70 degrees C (vapor pressure of water at 70 degrees C is 31.2 kPa absolute), and the pressure in the pipeline is 275 kPa, what is the maximum flowrate which will occur without cavitation
What yield would you need to earn on a taxable bond to be : A new-issue municipal bond rated Aaa by Moody"s Investors Service is priced to yield 8 percent. If you are in the 33 percent tax bracket, what yield would you need to earn on a taxable bond to be indifferent?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Should the airline carry freight for the local firm

Suppose the airline is offered $4,000 per week to haul freight along the route for a local firm. This will mean replacing one of the weekly passenger flights with a freight flight (at the same operating cost).

  Discusses a government policy on goods or services

Select an article in a newspaper or magazine that discusses a government policy on goods or services.

  How to indicate the minimum efficient scale

Industry studies often suggest that firms may have long - run average cost curves that show some output range over which there are economics of scale and wide range of output over which long- run average cost is constant.

  How the incentive to produce for workers and firms

Event 1: The government passes a law allowing states to pay unlimited unemployment benefits to all unemployed workers for an unlimited amount of time. Event 2: The federal government increases the restrictions on the immigration of skilled workers

  Explanation of slopes of is curve

Show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?

  Create a graph of the us gdp

Utilizing the link and the instructions to follow, create a graph of the US GDP relative to Debt from the period 1981 to 2010.

  Explain okun law

Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?

  Is the price-fixing fair ethical

Assume you are a business person with an opportunity to make more money by meeting with competitors and fixing prices, conduct which is illegal. The authorities will not discover that the prices have been fixed. In fact, the price rise could be sm..

  Explain how much control might an organization

Explain how much control might an organization have over pricing based on a product's elasticity

  What is the size of the labor force and unemployment rate

Suppose you have estimated the supply curve for the local labor market as: Qs = W - 5, where W is the hourly wage and Qs is the quantity of workers willing to work at each wage. You have estimated the demand curve for the local labor market as: Qd..

  Illustrate what will the new level of nonborrowed reserves

Illustrate what will the new level of nonborrowed reserves. If interest rates do not change, what will be the new level of total reserves.

  Explain why does the magnitude of price elasticity differ

Explain why does the magnitude of price elasticity differ in a and b above, although the same set of price-quantity combinations are used to compute the price elasticity of demand

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