Under what circumstances would duration equal maturity

Assignment Help Financial Management

Reference no: EM13971994

We have the Goncalves par bond paying a coupon rate of 8% and having a maturity of 20 years. If the coupon rate of Goncalves were to alter to 4%, what would the new duration be? What is the meaning of duration? Under what circumstances would duration equal maturity?

Reference no: EM13971994

Questions Cloud

Population welfare with individual freedoms and liberties : How can health policy makers balance population welfare with individual freedoms and liberties, and the desire of private individuals and corporations to function free of overly intrusive government intervention? How does the answer to this question ..

Explain clearly why they are strong or weak : Using the Company as Hewlett Packard and IT (Information Technology)as the Industry- a). describe one strong force and one weak force impacting your industry and company. Explain clearly why they are strong or weak?

Connection with the average maturity of the obligations : As one of several advisors to the U.S. Secretary of the Treasury, you have been asked to submit a memo in connection with the average maturity of the obligations of the federal government. The basic premise is that the average maturity is far too sho..

Are you able to keep pace with the work required : Reflect on the progress that you have made in regard to your capstone project and presentation. Are you able to keep pace with the work required

Under what circumstances would duration equal maturity : We have the Goncalves par bond paying a coupon rate of 8% and having a maturity of 20 years. If the coupon rate of Goncalves were to alter to 4%, what would the new duration be? What is the meaning of duration? Under what circumstances would duration..

Half sales office and half business office users : Create a 1-page network diagram showing the components and devices needed to build a simple office network based on the following scenario: 50 employees, half Sales office and half Business office users

Permanently restricted and temporarily restricted net assets : What is the traditional name for this statement? What is the purpose of this statement? What are the main sections of this statement? Discuss the difference between permanently restricted and temporarily restricted net assets.

Express the firm real revenues, real costs and real profit : Suppose the supply of capital is inelastic and given by Ks = 27. Plot thecapital supply line on the same graph as the capital demand curve. Findthe real rental rate of capital that clears the market and show it on thegraph.5. How many goods will t..

Accrual of accounting differ from cash basis of accounting : What is the purpose of this statement? Where in the financial statements would there be important explanatory information? In what financial statement would one identify the purchase of long-term investments? How does the accrual basis of accounting ..

User Account

All Pages