Modified duration relationship

Assignment Help Basic Computer Science
Reference no: EM131739316

Please show the formular and the work for each question, thank you. ABC Corp has a 5% coupon bond making annual payments that matures in 4 years.

a) Find the duration of the bond if it has a yield to maturity of 3%.

b) Using the modified duration relationship, find the price of the bond if the yield goes down 75bps.

c) Compared to a zero-coupon bond that has a maturity of 4 years, which bond would change most to a rate change? Explain without using calculations.

Reference no: EM131739316

Questions Cloud

Develop conclusions about the economys influence : Develop conclusions about the economy's influence on personal and business decision-making relative to purchases of big-ticket items or other major purchases.
Define the most vocal members of the us congress : Why is the value of the yuan relative to the dollar so important
Transfers from marketable securities to cash : a. Use the Baumol model to determine the optimal transaction size for transfers from Marketable securities to cash.
Importance to the larger health care system : Explain the role of the primary care and its importance to the larger health care system. Cite references in your response.
Modified duration relationship : Using the modified duration relationship, find the price of the bond if the yield goes down 75bps.
Explain basics of horizontal analysis or vertical analysis : Discuss the basics of Horizontal Analysis OR Vertical Analysis. Select a company and perform a horizontal analysis. Discuss results.
What are some critical issues to academic study of religion : What are some critical issues to the academic study of religion? Where do religious ethics come from, and what role do they play in the practice of religion?
Describe a position in the human services field : Explain two ethical standards that may impact your management of the Human Services professionals. Describe a position in the Human Services field.
Differences in creditor beneficiary and donee beneficiary : What are the key differences between a creditor beneficiary and a donee beneficiary? What type of intended beneficiary is Brenda?

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Identifies the cost of computer

identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:

  Input devices

Compare how the gestures data is generated and represented for interpretation in each of the following input devices. In your comparison, consider the data formats (radio waves, electrical signal, sound, etc.), device drivers, operating systems suppo..

  Cores on computer systems

Assignment : Cores on Computer Systems:  Differentiate between multiprocessor systems and many-core systems in terms of power efficiency, cost benefit analysis, instructions processing efficiency, and packaging form factors.

  Prepare an annual budget in an excel spreadsheet

Prepare working solutions in Excel that will manage the annual budget

  Write a research paper in relation to a software design

Research paper in relation to a Software Design related topic

  Describe the forest, domain, ou, and trust configuration

Describe the forest, domain, OU, and trust configuration for Bluesky. Include a chart or diagram of the current configuration. Currently Bluesky has a single domain and default OU structure.

  Construct a truth table for the boolean expression

Construct a truth table for the Boolean expressions ABC + A'B'C' ABC + AB'C' + A'B'C' A(BC' + B'C)

  Evaluate the cost of materials

Evaluate the cost of materials

  The marie simulator

Depending on how comfortable you are with using the MARIE simulator after reading

  What is the main advantage of using master pages

What is the main advantage of using master pages. Explain the purpose and advantage of using styles.

  Describe the three fundamental models of distributed systems

Explain the two approaches to packet delivery by the network layer in Distributed Systems. Describe the three fundamental models of Distributed Systems

  Distinguish between caching and buffering

Distinguish between caching and buffering The failure model defines the ways in which failure may occur in order to provide an understanding of the effects of failure. Give one type of failure with a brief description of the failure

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