Determine what will be the new of the bond of face value

Assignment Help Financial Econometrics
Reference no: EM13327751

A 10-year bond paying a 10%(semiannual)coupon is priced at 90.50% od face value. if the current yield changes to 12%, what will be the new of the bond?

Reference no: EM13327751

Questions Cloud

Find the values of x and y that maximize the firms revenue : If the company buys x minutes of television advertising and y minutes of radio advertising, its revenue in thousands of dollars is given by: f(x,y) = -2x^2 - y^2 + xy + 8x + 3y
How do the final velocities of the balls compare : A student at the top of a building throws a ball straight upward with an initial speed v0. How do the final velocities of the balls compare when they reach the ground
Make case for assigning unique flow label to each long-term : The question arises as to which packets generated by a source should carry nonzero IPv6 flow labels. For some applications, the answer is obvious. Small exchanges of data should have a zero flow label because it is not worth creating a flow for a ..
Provide a realistic assessment of expected revenues : Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple press
Determine what will be the new of the bond of face value : A 10-year bond paying a 10% (semiannual) coupon is priced at 90.50% of face value. if the current yield changes to 12%, what will be the new of the bond
Find the engines thermal efficiency by explicitly : A Brayton-cycle heat engine follows the cycle shown in the figure. The heat input from the burning fuel is 2.0 MJ per cycle. Determine the engine's thermal efficiency by explicitly
Explain the ionization constant or dissolution constant : The ionization constant or dissolution constant (KA) for acetic acid (HAc) is 1.8×10-5. (1) Write down the dissociation reaction. (2) Estimate pH of a solution containing 0.6 g of acetic acid in 1 L of water. Molecular weight of acetic acid is 60 ..
The previous three years and five future years : Corporate capital losses can only be claimed against capital gains in the year of the loss plus the previous three years and five future years.
What is the best estimate of the relative error : A group of students have measured the time it takes for a cart to travel some distance along a level track. What is the best estimate of the relative error in their determination of the cart´s speed

Reviews

Write a Review

Financial Econometrics Questions & Answers

  How should the fed-fdic and occ economists respond

The bank officials are concerned about the on-going shrinkage of bank assets as a share of total assets of financial institutions in the United States. In the late 1990s, assets of commercial banks as a percentage of total assets

  Use risk premium approach and assume risk premium

The tax rate is 37% Preferred stock: Two thousand shares of preferred are outstanding, each of which pays an annual dividend of $7.50. They originally sold to yield 15% of their $50 face value.

  Conduct a bivariate nonlinear conintegration tests

Conduct a bivariate nonlinear conintegration tests using threshold Vector Error Correction (TVEC) methodology. Need to develop Matlab code.

  What is the effective annual rate-ear on the loan

You have a car loan with a nominal rate of 7.29 percent. With interest charged monthly, what is the effective annual rate (EAR) on the loan

  What is present value of all sandys expected future expenses

Sandy is planing his retirement.The rate of interest that he can lend and borrow at the bank is 6 percent. He currently has $ 125000 in the bank. He intends to buy a car 3 years from now.

  What if interest rates suddenly fall by 2 percent instead

My employer has a 9 percent bond outstanding. Both bonds have 13 years to maturity, make semiannual interest payments, and have a YTM of 6 percent.

  Determine how much total interest is earned on interest

Consider a $500 deposit earning 5 percent interest per year for 5 years. How much total interest is earned on interest (excluding interest earned on the original deposit)

  Calculate the net present value for the original transaction

Firm H has the opportunity to engage in a transaction that will generate $100,000 of cash flow (and taxable income) in year 0. How does the net present value of the transaction change if the firm could restructure the transaction

  What was the return f the stock market for march 14-2013

THe index closed at 14,539.14, which was up from the previous day's close of 14,455.28. What was the return (in percent to four decimal places) of the stock market for March 14, 2013

  Find what value would be assigned the existing roof

A new roof would last 20 years, but would cost $20,000. The house is expected to last forever. Assuming the costs will remain constant and that the interest rate is 5% what value would you assign the existing roof

  What criteria should managers use in selecting projects

What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects

  Calculate the wacc for both investment

Outline and write the essay starting with the evidence-supported defense of your points and slowly transition into an address of opposing points - Calculate the WACC for both investment. Calculate the NPV for investments discounted at their respec..

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