What conclusions can you draw, Business Management

Assignment Help:

QUESTION

(i) Write short notes on

a. Callable Bonds

b. Yield to Maturity

c. Zero-Coupon Bonds

(ii) Consider a bond with a 12% coupon rate and paying interest semi-annually. The maturity date is March 1, 2013, and the settlement date is July 1, 2011. Assuming that the yield to maturity is 5%, calculate

a. The dirty price,

b. The accrued interest,

c. The clean price.

(iii) Suppose you hold a five-year bond with a par value of $100 and a coupon rate of 5%. Assume that the bond is paid annually and that interest rates are 3% (yield).

a. What is the duration of the bond?

b. What is the duration of the bond if instead the coupon rate was 1%?

c. What is the duration of the bond if instead the coupon rate was 3%?

d. How would your answers in parts (a), (b) and (c) change if you were holding a ten-year bond instead?

e. What conclusions can you draw?


Related Discussions:- What conclusions can you draw

Question, Consider the following new business venture. An agent is consider...

Consider the following new business venture. An agent is considering investment in one of three real estate parcels: • Option 1: multiunit rentals • Option 2: commercial building

Qestion, How will you inform your managers and supervisors about budgets, r...

How will you inform your managers and supervisors about budgets, reporting requirements and financial delegations? I just want to know

MBA, a paper mill prodecs two grades of paper viz., X and Y. Because of raw...

a paper mill prodecs two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper in

Organization of strategic planning, Question 1: a) Describe why plannin...

Question 1: a) Describe why planning is one of the main functions of a manager. b) Outline the main advantages and disadvantages to an organization of strategic planning.

ORKING CAPITAL, Explain why the composition of the working capital of a bus...

Explain why the composition of the working capital of a business is as important as the value of that working capital.

Fog index, Select an article of around 200 words from any business publicat...

Select an article of around 200 words from any business publication. Analyze the readability of the article using the "Fog Index". Is the reading level appropriate for the reader o

Humanistic aspects of tq, The human element is the most important input i...

The human element is the most important input in any industrial enterprise and it is the one which is most difficult to control. Quality Management is essentially a control

Use of information system in business, Q. Use of Information system in busi...

Q. Use of Information system in business? The utilization of information system has been increasing day by day. It assists to give a competitive advantage over business rivals.

Policies about ethical behavior and ideas, Policies about Ethical Behavior ...

Policies about Ethical Behavior and Ideas This company has global code of conduct that reflects its ethical behavior and ideas. In global code of conduct, the company include

Layout and design of the food processing plant, Question : KVC is situa...

Question : KVC is situated about 50 km out of Vacoas. It produces organic jams, chutneys, juices, purees etc. and exports to African countries under the label "Legends". It als

Write Your Message!

Captcha
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