What are the yield to maturity-macaulay duration

Assignment Help Business Management
Reference no: EM132742390

On 1 July 2020, risk-free Bond A is trading at $100, which matures on 1 July 2025 with the face value of $100 and 10% coupon rate. On the same day, zero-coupon risk-free Bond B is trading at $90, which matures on 1 July 2028 with the face value of $100. Coupon rates and yields to maturity are expressed as an annualized percentage rate compounded semiannually. Coupons are paid semiannually.

-a) What are the yield to maturity, Macaulay duration, and the modified duration of Bond A?

-b) What are the yield to maturity, Macaulay duration, and the modified duration of Bond B?

Reference no: EM132742390

Questions Cloud

Standard deviation of an equally-weighted portfolio : Suppose two assets A & B are uncorrelated, with standard deviation of returns equal to s each.
Prepare the journal entries for the transactions : Prepare the journal entries for this transactions. Peterson Company issued 4,000 shares of preferred stock for $240,000. The stock has a par value of $60 per.
Coupon rate and the yield to maturity : Assume your company has a liability with 11.5 years of Macaulay duration.
Which form of organization would set up for your club : Consider the need to manage and evaluate the club and describe which form of organization would you set up for your club such as a cost center, profit center.
What are the yield to maturity-macaulay duration : On 1 July 2020, risk-free Bond A is trading at $100, which matures on 1 July 2025 with the face value of $100 and 10% coupon rate. On the same day
What is the value of the levered firm : Assume the firm borrows $430,000 at an interest rate of 5.85 percent. The applicable tax rate is 35 percent. What is the value of the levered firm?
Optimum capital structures of companies : As of Sep. 30, this year, the debt/equity ratio of the Samsung Electronics was 0.3609 (36.09%) and that ratio of the Korean Air Lines was 6.9290 (692.90%).
Determine the amount of interest to be capitalized : On December 31, 2019, Joross Company borrowed P3,000,000 and issued a 12%, 3-year note to finance the construction of a new building. In 2020, the company made.
How nurses play a significant role in treating patients : How nurses play a significant role in treating patients who are not able to spend money on their health treatment? What is the importance of education.

Reviews

Write a Review

Business Management Questions & Answers

  Price of one national currency in terms of another currency

An international exchange rate: a. Is the price of one national currency in terms of another currency.

  Elements on gdp from the expenditure approach

Explain each of the four elements on GDP from the expenditure approach. Include in your discussion what determines each and which is the largest. Your answer to this question should be about 500 words.

  Description of the base of the pyramid

Description of the Base of the Pyramid (BOP) and why the strategy is challenging to implement.

  Traditional performance appraisal systems

What advantages might 360-degree feedback have over traditional performance appraisal systems?

  Whose security interest has priority

On the same day, Great Products perfects its interest also notifies EZ Credit also First National. Eagle takes possession of the new inventory on April 15. On April 20, Eagle defaults on all of the loans. Whose security interest has priority?

  The impact of job satisfaction-organization commitment

"The impact of job satisfaction, organization commitment, organization citizenship behavior (OCB) on employees' performance."

  What are the five porter forces analysis of aritzia inc

What are the five porter forces analysis of Aritzia inc?

  Increasing interdependence and inclusive decision making

What other effects do you anticipate from increasing interdependence and inclusive decision making?

  Message after typing show ip route

Everyone on the LAN network lost connectivity to the Internet. Upon troubleshooting the issue, the network engineer notices the following message after typing.

  Most development in business ethics

In each of the last five decades i business ethics, which decade saw the most development in business ethics? why? and which decade saw the most ethical dilemma

  Shippers transportation costs

What is released value rate and how does it affect the shippers transportation costs?

  Multiprogramming and multiprocessing present

This is true as far as it goes. However, cite two differences in terms of concurrency between multiprogramming and multiprocessing.

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