What is the bond approximate modified duration

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Reference no: EM131848355

1. Kansas Office Supply had $24,000,000 in sales last year. The company's net income was $400,000. Its total assets turnover was 6.0. the company's ROE was 15 percent. The company is financed entirely with debt and common equity. What is the company's debt to assets ratio

2. An investor buys a three-year bond with a 4% coupon rate paid annually. The bond, with a yield-to-maturity of 6%, is purchased at a price of $94.65 per 100 of par value. Assuming a 5-basis point change in yield-to-maturity, what is the bond’s approximate modified duration?

Reference no: EM131848355

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