What would be the expected price change for the asset

Assignment Help Business Economics
Reference no: EM132415526

You own a fixed-income asset with duration of five years. If the level of interest rates, which is currently 8%, goes down by 10 basis points (0.1%), what would be the expected price change for the asset, based on the duration analysis (in percentage term)?

Reference no: EM132415526

Questions Cloud

How the given interactions might be improved : Post a description of experiences or observations about how nurse informaticists and/or data or technology specialists interact with other professionals.
What are the rules of origin in the nafta : Involving knowledge of the rules of origin in general and current rules. What are some proposed USMCA changes in the automotive industry?
Firm cost of common stock using dcf approach : The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10% per year
Discuss the sherman antitrust act : Discuss the Sherman Antitrust Act and how it is applied to sport. Do you believe that a sports league should be exempt from antitrust laws? Why or why not
What would be the expected price change for the asset : What would be the expected price change for the asset, based on the duration analysis (in percentage term)?
Identify the stakeholders impacted by the project : Identify the stakeholders impacted by this project. Explain the patient outcome(s) or patient-care efficiencies this project is aimed at improving and explain.
How did the neoliberal form of capitalism in the us : How did the neoliberal form of capitalism in the U.S. give rise to a severe financial and economic crisis starting in 2008?
What is a social structure of accumulation : What is a social structure of accumulation (SSA)? According to the SSA theory, why does every SSA eventually stop working effectively?
Sound reasoning-theoretical principle in stressful situation : It is often difficult utilize sound reasoning and theoretical principles in stressful situations.What are the advantages of this change, what are disadvantages?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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