What will be the new price using the duration model

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Suppose that the Bethesda mining company had sales of 2945376 and net income of 89351 for the year ending

Jensen's Shipping wants to expand as soon as it can save $112 million. Towards that goal, the firm started saving 3 years ago and currently has $38.2 million saved. Starting today, the firm will add $15,000 a month to this savings account. The rate of return is 7.1 percent, compounded monthly. How long will it be from now before the company can expand?

A $1,000 six-year bond has an 8 percent coupon, is selling at par, and contracts to make annual payments of interest. The duration of this bond is 4.99 years. What will be the new price using the duration model if interest rates increase to 8.5 percent?

Reference no: EM131966938

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