User Account

All Pages

Create a portfolio

Assignment Help Finance Basics
Reference no: EM13102002

1)A bond has a par value of $1000, a time to maturity of 8 years, and a coupon rate of 6% with interest paid annually.If the current market price is $765,
Suppose the interest rate falls to 9% right after the bond is purchased and stay at that level. What will be the holders's holding period yield if the bond is sold after 2 year ?

2)You need to create a portfolio with a duration of 6 years. You can use a 3 year zero-coupon bond and a perpetuity which pays $80 each and every year forever and has yield of 10%. how much of the porfolio value in percentage you would have to invest in the zero-coupon bond, and how much in the perpetuity ?

Reference no: EM13102002

Questions Cloud

Assuming that the mass of the planet is distributed : Assuming that the mass of the planet is distributed with spherical symmetry, what is its mass.
Ncaa basketball tournament probabilities : NCAA Basketball Tournament. Each year, 64 college basketball teams compete in the NCAA tournament. Sandbox.com recently offered a prize of $10 million to anyone who could correctly pick the winner in each of the tournament games.
What is the resultant vector : What is the resultant vector, R, obtained by adding vectors C and D? Express the magnitude to three significant figures. Express the angle to one decimal place.
Determine the constants ro and b : the data represents the resistance R of a thermistor in Ohms as a function of tempeature T in kelvin make a graph of the natural logarithm of the resistance ln(R) versus the inverse of the temperature, 1/T and determine the constants Ro and B in R..
Create a portfolio : You need to create a portfolio with a duration of 6 years. You can use a 3 year zero-coupon bond and a perpetuity which pays $80 each and every year forever and has yield of 10%. how much of the porfolio value in percentage you would have to invest i..
Explain a court settlement awarded an accident victim : A court settlement awarded an accident victim four payments of $50,000 to be paid at the end of each of the next four years. Utilization a discount rate of 4%, compute the present value of the annuity.
Lower costs for similar products or world-wide distribution : Your company is competing globally alongside tough competitors who often have advantages such as size more resources, lower costs for similar products or world-wide distribution.
The relationship between inventory and sales : What advantages does the company appear to have concerning the relationship between inventory and sales?
Determining the success of an organization : Executive pay levels are a frequent topic of discussion as well as analysis today. The text discusses that pay levels mayn't be unreasonable since executives are critical in determining the success of an organization.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate patent amortization expenses

ELO Company purchased a patent for $180,000 on September 1, 2006. It had a useful life of ten years. On January 1, 2008, ELO spent $44,000 to successfully defend the patent in a lawsuit.

  Determine the present value of the stock

Next year dividend for ERT stock is expected to be $4. You expect it to be $4 in next two years, also, but then you expect it to increase at an 8% yearly rate forever.

  Caluing business opportunities

Suppose that the role of finance section at Strident Marks. The finance section has a couple of new hires, and the CFO has asked that you spend a short amount of time with them,

  Describe organization from an open systems perspective

Select an organization to which you have finish access or one about which much has been written. The best reports will be able to make on business or popular press articles.

  Find what is the maximum capital budget

what is the maximum capital budget that can be adopted without adversely affecting stockholder wealth?

  Calculate total contribution margin

Baker Corporation has a product that sells for $20 per unit. The variable costs are $12 per unit, and fixed costs total $30,000 every year.

  Computation of net present value of investment

Computation of net present value of investment where The prevailing interest rate is 6%

  Make of statement of stockholders'' equity

Make of statement of stockholders' equity and A company had the following balances in its stockholders' equity accounts at December

  Determine the corporations earnings per share

Five investment options have the following returns and standard deviations of returns. Use the coefficient of variation and rank the five options from lowest risk to highest risk.

  Arbitrage with forward and option contracts

What opportunity is open to an arbitrageur when a 180-day European call option to buy 1 Euro for $1.3083 costs $0.02 per Euro? Assume the size of forward and options contracts to be 1,000,000 Euros each. Ignore borrowing costs.

  Determination of optimal economic life

The Scampini Supplies Corporation recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to create net after-tax operating cash flows, including depreciation, of $6,250 each year.

  Find the degree of financial leverage

Gina Dare, who wishes to be a millionaire, plans to retire at the end of forty years. Gina's plan is to invest her money by depositing into an IRA at the end of every year.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd