User Account

All Pages

What is actual bond price

Assignment Help Business Management
Reference no: EM132171796

A $1,000 face value bond has a coupon of 4% (paid annually) and will mature 17 years from today? 

A. Assume that the yield-to-maturity is 4.5%. What is the bond's:

i. Duration

$40 *

ii. Modified Duration

B. Assume that the bond's yield-to-maturity immediately changes from 4.5% to 3.5% (the bond still has 17 years to maturity).

i. Estimate the % change in the bond's price using modified duration

ii. What is actual bond price (at YTM = 3.5%), and the % price change (from YTM = 4.5% to 3.5%)?

iii. Why is there a (large) difference between the actual and estimated % price changes in this case?

Reference no: EM132171796

Questions Cloud

Capital budgeting projects using the net present value : If a firm discovers a ranking conflict exists after evaluating two mutually exclusive capital budgeting projects using the net present value (NPV)
New issues of common stock by scubapro corporation : How many shares would an investor who currently has 20,000 shares, have the right to buy if she exercises her preemptive right?
Analyze the various ethical issues a financial manager : Analyze the various ethical issues a financial manager could potentially face and how these could be handled.
Create an organizational chart for the it department : Briefly describe the roles and responsibilities associated with the positions within the organizational chart.
What is actual bond price : A $1,000 face value bond has a coupon of 4% (paid annually) and will mature 17 years from today?
Write a program that continuously requests a grade to be : When a grade of 999 is entered, the program should exit the repetition loop and compute and display the average of the valid grades entered.
Advantage for small business : Please explain why leasing as a capital financing alternative is an advantage for small business.
Display a table of expansion length for a steel bridge : Write a C++ program that displays a table of expansion length for a steel bridge that's 7365 meters long at 0 degrees Celsius.
What is the expected area : If the area of the tiles is the square of the side length, what is the expected area?

Reviews

Write a Review

Business Management Questions & Answers

  Analogical readingexplain the concept of analogical

analogical readingexplain the concept of analogical reasoning and describe a decision in your personal life that would

  What is the value of the shareholders

What is the value of the shareholders' equity account for this firm

  Identify some physical artifacts such as log mascot building

Write on "Organizational Culture". Address the following in your paper: What is Culture Why is it important Internal Integration External Adaptation Also include a description of a culture for an organization you are familiar with. Identify some phys..

  Determine whether logitech''s past ability to innovate

How does Logitech's quality standards impact its ability to be successful in the future?

  What is required to apply IT into your chosen business

You are to research a real life business example of your choice and the impact of IT on that business. What is required to apply IT into your chosen business

  Define an array of student names

1. The following is used to define an array of student names.

  Market supply or marked demand

Aggregation Practice - in each of the following situations, solve for either market supply or marked demand

  Partnership is set up without a formal partnership agreement

Suppose a partnership is set up and operated without a formal partnership agreement. - What problems might arise? Explain.

  Does human capital issues affect healthcare

Does human capital issues affect healthcare? How do the social determinants of health impact? What other external factors might influence healthcare?

  Impact of an increase in direct taxes

What is the impact of an increase in direct taxes, (eg income tax) on the AS- AD model?

  Describe an example of a psychic prison

Describe an example of a "psychic prison" experienced in an organization

  Differences among the theories of goal setting

Can you compare and contrast the significant similarities and differences among the theories of goal setting, self-efficacy, and reinforcement. Specify the theory that you believe most closely aligns with your current or future approach to motivat..

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