Calculate duration and modified duration of bond

Assignment Help Finance Basics
Reference no: EM131413059

Company Y issues $1 million face value bond that matures in 3 years. The bond has a coupon rate of 10%. Coupon payment is made semiannually. The required rate of return is 8% (compounded semiannually). Calculate the duration and modified duration of the bond.

Reference no: EM131413059

Questions Cloud

Annual interest and compounded quarterly : You are hoping to buy a new boat 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings into an account that pays 5.2% annual interest and compounded quarterly.
Create a reverse map from counts to words : To do this, write code at the end of the program to create a reverse map from counts to words that is based on the original map. Assume that no two words of interest occur the exact same number of times.
What legal arguments could be raised in letishas defense : If Letisha does not pay and Sudson sues her for breach of contract, what legal arguments could be raised in Letisha's defense against the enforcement of the automatic renewal clause? Explain.
Complete a calculation of the annual amount required : Complete a calculation of the annual amount required to support any gap between your present wealth and your future need, using the return derived from your portfolio as the realized return.
Calculate duration and modified duration of bond : Company Y issues $1 million face value bond that matures in 3 years. The bond has a coupon rate of 10%. Coupon payment is made semiannually. The required rate of return is 8% (compounded semiannually). Calculate the duration and modified duration ..
Create an annotated bibliography with four scholarly sources : Create an annotated bibliography with four scholarly sources that you may use in your proposal to support your discussion of the problem or the solution.
Health insurance of some type : The amount the hospital receives depends on whether patients pay their own bills or have health insurance of some type. Assume that private insurance companies will pay 80% of the full hospital charges for each type of service. Medicare/Medicaid w..
Describe why collaboration and partnerships are an important : Describe why collaboration and partnerships are an important strategies in achieving public health goals. Discuss a potential partnership that you would like to develop in your community to encourage the success of your health promotion project. W..
What is yield to maturity : Sommers Co.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 10-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?

Reviews

Write a Review

Finance Basics Questions & Answers

  Make a break-even chart using total cost versus volume

Peter, a president of a company produces power transformers for personal computer manufacturers. Peter's choice of the various methods by which a new model of transformer can be built has been narrowed to 3 alternatives.

  What is the expected incremental profit associated with the

assignment - completely answer the following questions1. explain the rational for each of the four variables that

  The comparative financial statements of triad images inc

the comparative financial statements of triad images inc. are as follows. the market price of triad images inc. common

  What share price will you receive a margin call?

1. Suppose you take out a margin loan for $60,000. The rate you pay is an 8.6 percent effective rate. If you repay the loan in six months, how much interest will you pay?

  Randomly selected human being on earth

The probability that a randomly selected human being on Earth has green eyes is 0.02. If 55 peopleare randomly selected from the population, what is the probability that at least 1 of themhas green eyes? (Round your answer to four decimal places..

  Changes in exchange rates

Virtually every operation of the MNC can be influenced by changes in exchange rates. Identify and describe at least four of the corporate finance functions (from our readings) for which exchange rate forecasts could be necessary. Your essay should..

  According to the international fisher effect ife what is

nominal annual interest rates in cyprus are 5. the spot rate for the cyprus pound cyp is 1.50 and the cyprus pound is

  Determine the interest amount

Mr. Nailor invests 5,000 in a certificate of deposit at his local bank. He receives yearly interest of 8 percent for 7 years.

  Create a bond amortization table

Janson Bottle Corporation sold $400,000 in long-term bonds for $351,040. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10 percent.

  Assume that the yield curve is horizontal with rates

mccue inc.s bonds currently sell for 1250. they pay a 90 annual coupon have a 25-year maturity and a 1000 par value

  Evaluate the financing decisions made by walmart executive

What are risks associated with Walmart's equity financing decisions? Provide a minimum of three associated risks. How would you evaluate the financing decisions made by Walmart's executives

  Assessment of opportunities and risks

Provide final recommendations based on both your findings and your initial assessment of opportunities and risks on the three dimensions of international finance, economic trends of the country, impact of globalization, and the monetary system.

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