Macaulay duration and modified duration

Assignment Help Business Economics
Reference no: EM132281259

A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.00 percent and the bond has a yield to maturity of 5.43 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.)

Macaulay duration:

Modified duration:

Reference no: EM132281259

Income effect and how much is due to substitution effect

Ross derives utility from only two goods, chocolates (x) and donuts (y). His utility function is as follows: U(x,y) = 2xy. His marginal utility from chocolates (x) and donuts

Sloping portion of the marginal product of labor curve

Using TP=Q=f(K,L) show mathematically that the average product of labor curve intersects the maximum point of the average product of labor curve. Demonstrate mathematically th

Considering purchasing a savings bond

You are considering purchasing a savings bond that will pay $100 in five years. The market interest rate currently is 3% per year. What should you be willing to pay to purchas

What is the present discounted value of the payments

Suppose that you have won a wrongful injury lawsuit and have been awarded $5 million dollars. However, the $5 million is going to come in two payments. The first payment is $3

Analyze effects of a reduction in the nominal money stock

Analyze the effects of a reduction in the nominal money stock on the price level, on output, and on the real money stock when the aggregate supply curve is positively sloped a

Draw supply and demand graphs

Products become obsolete and are replaced by new goods, such as the typewriter. Draw supply and demand graphs and describe what results when this occurs.

What is the marginal rate of substitution

Draw an indifference map for a typical person’s preferences over five-dollar bills and tendollar bills using the vertical axis for five-dollar bills and the horizontal axis fo

What price should you charge for a flu shot

it’s that season again! You have engaged in a market study to categorize your patients’ willingness to pay for their flu shot into 8 equal sized groups: $40, $35, $30, $25, $2


Write a Review

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