What is the duration of two-year bond

Assignment Help Financial Management

Reference no: EM132061880

What is the duration of a two-year bond that pays an annual coupon of 12 percent and whose current yield to maturity is 16 percent? Use $1,000 as the face value. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) Duration of a bond b. What is the expected change in the price of the bond if interest rates are expected to increase by 0.3 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Expected change in the price $

Reference no: EM132061880

Questions Cloud

Kids self confidence in future : In conclusion kids responsibility by contributing some money for parent to pay rent, is helpful for relief from parents huge saddle household expense

Reasons demonstrate that parents are the family : Three reasons demonstrate that parents are the family that should charge their kids. The main reason is that kids can learn their future

Evaluate various marketing processes and tools : Evaluate various marketing processes, tools, and media channels that are used to support the integrated marketing plan.

What do you think my thesis : What do you think my thesis? Parent should charge their kids rent, because kids can learn how to make money

What is the duration of two-year bond : What is the duration of a two-year bond that pays an annual coupon of 12 percent and whose current yield to maturity is 16 percent?

What is the standard deviation of return rates : What is the expected return rate? What is the standard deviation of return rates?

Different types of media materials : Analyze how the different types of media materials affects the style and techniques of drawing, sculpture, painting, mixed media, printmaking

How does your selected company compare to the industry : What do the findings tell you about the financial health of the company? How does your selected company compare to the industry?

Better investment opportunity based on sharpe ratio : Which one is a better investment opportunity based on Sharpe Ratio? What is the expected return of your portfolio of two stocks?

User Account

All Pages