User Account

All Pages

What is the duration of the bond for north american

Assignment Help Financial Accounting
Reference no: EM132960897

A North American bond has 2 years to maturity. It has a $1,000 face value and a 10% coupon rate with interest paid semi-annually. The required rate of return on bonds of similar risk and maturity, with semi-annual interest payments, is currently 8%.

Problem 1: What is the duration of this bond?

a) 1.86 years

b) 1.93 years

c) 2.07 years

d) 3.73 years

Reference no: EM132960897

Questions Cloud

Calculate nopat, invested capital, and roi for cato mills : Cato Mills is a division of Iowa Woolen Products. For the most recent year, Cato had net income of $22,000,000. Calculate NOPAT, invested capital, and ROI
Discuss events that can cause price of a stock to increase : Discuss events that can cause the price of a stock to increase or decrease. Investment Risk: Explain key risks associated with investing in stocks.
How many shares will be outstanding after the split : How many shares will be outstanding after the split? BGA has 245,000 shares outstanding that sell for $20 per share. The company plans a 4-for-5 reverse stock.
Record financial effects of shareholders equity transactions : Record the financial effects of the shareholders' equity transactions for The Ward Corporation for the year
What is the duration of the bond for north american : What is the duration of this bond? A North American bond has 2 years to maturity. It has a $1,000 face value and a 10% coupon rate
What the company should record a deferred tax : A company reported pretax financial statement income, The income tax rate is 30 percent. In its Year 1 balance sheet, the company should record a deferred tax
How much is share of each partner to the partnership loss : Assuming the result of operation is a loss of P50,000, how much is the share of each partner to the partnership loss
What would cost if alaska was in exactly the same condition : What would it cost in 2007 if Alaska was in exactly the same condition as it was 140 years before and the prevailing interest rate over the 140 years was 4%.
Calculate for month of april the company total gross sales : Calculate for the month of April the company's (a) total gross sales revenue, (b) net sales revenue, and (c) sales related expenses.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Technique for evaluating series of financial statement data

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time:

  What bond price if yield to maturity drops to ten percent

What is the bond's yield to maturity? What will be the bond's price if yield to maturity drops to 10%, assuming that all other factors remain the same?

  Do include the unguaranteed residual value

Do you include the "unguaranteed" residual value when you arrive at PV of minimum lease payment or like the Lessee do we only use guaranteed??

  How much is the relevant cost of the wicket

The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket? Bramble, Inc. currently manufactures a wicket as its main product.

  Determine what would new portfolio beta that mr hatim holds

Pakistan Tobacco Company with a beta of 1.65. On the basis of provided information what would be the new portfolio beta that Mr. Hatim holds

  Goal is to communicate with candor

Suppose that you manage an employee who is spending too much time using social media at work. The result is that he has missed three important deadlines in one week.  You are planning a face-to-face conversation to address this performance problem, a..

  What expense accounts correspond exactly to the amounts

A P5,000 purchase on account was made. The entry to record the payment on account after the expiration of the 2% discount period would include a

  Financial analysis concepts that are unique to the industry

Select one of the following industries: banks, electric utilities, oil and gas, transportation, insurance, and real estate companies.

  What is elliott cost of equity

What is Elliott's cost of equity? Elliott's Cross Country Transportation Services has a capital structure with 30% debt at a 10% interest rate.

  Identifying the amount sandy willing to pay for investment

Identifying the amount Sandy willing to pay for the investment opportunity: Interest 9% End of year Cash flow ($) Discounting rate Discounted cash flow

  Determine what is the beta of the stock

Consider a stock that has a covariance of returns to the market of 0.008. The standard deviation of the market is 0.1. What is the beta of this stock?

  Amount of discountor premiumt

Using the straight- line method. the amount of discountor premiumt o be amortized every intrest period would be''

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