What is the duration

Assignment Help Business Management
Reference no: EM131201604

Suppose you own a portfolio of three different bonds with the following information:

Bond Market Value Duration

A $2.3 million 2 years

B $3.5 million 1.5 years

C $2.5 million 5 years

What is the duration (in years) of the bond portfolio?

Express your answers in two decimal places.

Reference no: EM131201604

Questions Cloud

Discuss the properties of prokaryotes and eukaryotes : Write an essay discussing the similarities and differences between prokaryotic and eukaryotic cellular organisms. Include the cellular characteristics, morphological, and, functional properties. Show how the cellular characteristics allow for microbi..
Draw a datapath for a pipelined complex multiplier : The real and imaginary parts of the product are similarly represented, but with 8 prebinary-point and 24 post-binary-point bits. The complex multiplier is subject to constraints that strongly limit the circuit area.
Prepare the profit and loss account for top to toe : Rob Walters has a business called Walters Watches which has the following items in its balance sheet as at 31 March 1998:- Prepare the profit and loss account for Top-to-Toe for the year ending 31 December 1988.
Additional annual cash flows : If positive, how much value is being created for the company through the purchase of this asset? If negative, what additional annual cash flows are needed for the NPV to equal zero? To what phenomena might those additional positive cash flows be a..
What is the duration : Suppose you own a portfolio of three different bonds with the following information:
Why hr managers are tasked with monitoring overtime : Over the years, there have been a number of lawsuits regarding overtime pay, which is precisely why HR managers are tasked with monitoring and regulating overtime.
Calculate the macaulay duration : A $1,000 bond that pays semi-annual coupons at 5% redeems at par in exactly 3 years from now. Calculate the Macaulay Duration (in years), if the yield to maturity is currently 6%.
Coupon rate of the bond issue : Dan is also considering whether to issue coupon bearing bonds or zero coupon bonds. The YTM on either bond issue will be 7.5 percent. The coupon bond would have a 6.5 percent coupon rate. The company's tax rate is 35 percent.
Currency trader at bank : The current exchange rate is £1.00 = $2.00. Compute the correct balances in Bank A's correspondent account(s) with bank B if a currency trader employed at Bank A buys £45,000 from a currency trader at bank B for $90,000 using its correspondent rel..

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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