User Account

All Pages

Calculate the modified duration and convexity of bond

Assignment Help Finance Basics
Reference no: EM132826243

A bond pays 5.36% semi-annual coupon for 6 years and is priced at $100. Calculate the modified duration and convexity of this bond using approximate formulas (use 10 basis point change in yield). What is Macaulay's duration of this bond (do not use table of cash flows or the first derivative formula).

Reference no: EM132826243

Questions Cloud

Discuss the circumstances of an auditors providing : Discuss the circumstances of an auditors providing a modified report for a client. In your answer, give examples of the different types of reports
How long will it be before you have enough to buy the car : The bank pays 4.7 percent annual interest on its accounts. How long will it be before you have enough to buy the car
Which of the bonds would advise the investor to invest : Considering the bond theorems and assuming interest rates may fall in future, explain in which of these bonds you would advise the investor to invest.
Sneaky corp market to book ratio : In its latest financial statement, total assets were $150 million and total debt was $60 million. What was Sneaky Corp's Market to Book ratio?
Calculate the modified duration and convexity of bond : Calculate the modified duration and convexity of this bond using approximate formulas (use 10 basis point change in yield).
Calculate the value of a bond that matures in thirteen years : Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 15 percent.
Determine the net pay for this period : Assume 100% of the gross salaries and wages are subject to CPP and EI. Therefore, determine the NET pay for this period
How has technology helped people with physical challenges : How has technology helped people with physical challenges? In addition, research at least 2 additional assistive technology devices that are being used to help.
What is the investor holding period return : An investor paid $935 for a 5% annual pay bond that will mature in 5 years for $1,000. What is the investor holding period return at maturity?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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