Which of these four is the least sensitive

Assignment Help Financial Management
Reference no: EM131448964

Which portfolio would be the most sensitive to a change in interest rates: five $1,000, five year annual coupon bonds with a 8% coupon; one $5,000, 5-year semi annual coupon bond with 8% coupon; one $5,000, 3- year annual coupon bond with a 8% coupon; one $5,000, 3- year semi annual coupon bond with a 8% coupon. which of these four is the least sensitive?

Reference no: EM131448964

Questions Cloud

What is the probability to get a sample average : What is the probability to get a sample average of 95 or more customers if the manager had not offered the discount?
What is the eoq for the component : Westside Auto purchases a component used in the manufacture of automobile generators directly from the supplier.
Describe the research design and population sample : Describe the research design, population sample, and other procedures used in study. Briefly describe the data collected and findings of the study.
Discuss the approximate degrees of movement for joints : Why might it be important to know the approximate degrees of movement for joints?
Which of these four is the least sensitive : Which portfolio would be most sensitive to change in interest rates: five year annual coupon bonds with 8% coupon; which of these four is least sensitive
General objectives of international compensation : 1) Present the general objectives of international compensation for a firm. In addition, name and discuss the objectives of international compensation.
What have you learned about the world around you : Write a two to three page reflection paper addressing the following questions. What have you learned about the world around you
How are your movements or activities alike : Compare and contrast your movement or activity to the one chosen by two of your peers. How are your movements or activities alike and how are they different?
What is e-commerce : What is e-commerce? What are the main types of e-commerce transactions?

Reviews

Write a Review

Financial Management Questions & Answers

  What interest rate would legally have to be quoted

A local finance company quotes an interest rate of 17 percent on one-year loans. So, if you borrow $31,000, the interest for the year will be $5,270. What interest rate would legally have to be quoted? What is the effective annual rate?

  Bond valuation-interest payment

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 18 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturit..

  Assuming that the executive leadership includes several

assuming that the executive leadership includes several former accountants how would the organizational goals influence

  Treasury bond purchased ten years from today

The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 2.45 percent and the rate on 20-year Treasury bonds is 4.70 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 10-year Treasury b..

  Dividends are expected to grow-stock price

A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 16 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely. If the required return is 11 percent, what is the price of the..

  Compute the bonds expected rate of returndetermine the

you own a 20-year 1000 par value bond paying 7 interest annually the market price of the bond is 875 and your required

  What is the accumulated sum of the stream of payments

What is the accumulated sum of the following stream of payments? $1,831 every year at the end of the year for 5 years at 7 percent, compounded annually.

  What is yield to maturity of this bond

A Japanese company has a bond outstanding that sells for 95 percent of its ¥100,000 par value. The bond has a coupon rate of 6.2 percent paid annually and matures in 18 years. What is the yield to maturity of this bond?

  Bond portfolio using price sensitivity hedge ratio

A bond portfolio is worth $24,000,000 today. The futures price for a Treasury note futures contract is $110,000 and each contract is for the delivery of bonds with a face value of $100,000. How many contracts are necessary for hedging the bond portfo..

  Explain the firm''s cash flow due to financing activities

At the end of the year, Tum Biscuit Co. had $160 million in cash on its balance sheet, and the firm had $305 million in cash at the end of the second year. What was the firm's cash flow (CF) due to financing activities in the second year?

  Tax rate and dividend payout rate will also remain constant

The most recent financial statements for Beneke Fabricators, Inc., follow. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other ex..

  Calculate the firm operating cash flow

Your company has decided to produce a new line of television/electronic media player. You estimate that your company will sell 51,000 per year, and that this product will sell for $750 each. The tax rate is 40%. Sketch a simplified income statement a..

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