User Account

All Pages

Find macaulay duration and modified duration

Assignment Help Finance Basics
Reference no: EM131504435

ALL WORK MUST BE SHOWN IN EXCEL AND STORED IN A MS EXCEL FILE

1. Consider a U.S. 30-year corporate bond with the following characteristics:

Settlement date: May 5, 2017

Maturity date: March 15, 2047

Coupon: 3.25%

Yield: 4.56%

Frequency: ?

Basis: actual / actual

a. Find Macaulay duration and modified duration. Make sure to show your work.

b. If the yield decreases by 15 basis points, what is the exact percentage change in the price of the bond? Make sure to show your work.

c. If the yield decreases by 15 basis points, what is the duration approximate percentage change in the price of the bond? Make sure to show your work.

Reference no: EM131504435

Questions Cloud

What are the primary types of leases : Explain core concepts related to lease vs. purchase and tactical financial decisions - The system also permits customers tocall up current quotes on terminals in the lobby.
The challenge of engaging both employed staff and physicians : Discuss your thoughts on how this can be managed so that everyone can feel that they are heard and that some common ground can be achieved.
Calculate the market-to-book ratio for lab r doors : The firm has total assets of $79 million, the debt ratio is 51%, no preferred stock, and there are 4.4 million shares of common stock outstanding.
Determining the same amount of money : How much money should he invest now in order to have the same amount of money in 20 years as Hailey?
Find macaulay duration and modified duration : Find Macaulay duration and modified duration. Make sure to show your work.
New product development process : In your opinion, which of the seven stages in the new product development process is most important and what reasoning led you to your conclusion?
How to learn what you need to know in order to structure : What thoughts do you have about how to learn what you need to know in order to structure the hospital's preparations and continue regular functioning.
Read the case study and develop your it support strategy : ISCG6412IT Help Desk Design a job description for the Help desk operators and develop a code of ethics that they will need to abide by.
A disaster situation in a health care setting : When faced initially with a disaster situation in a health care setting, what do you think your first five steps need to be? Why?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is an impairment of a fixed asset

What is an impairment of a fixed asset?- Describe the benefits that intangible assets provide to an enterprise.- What basis underlies the computation of depletion?

  Explain the actions used in an experiment to avoid

Define or describe the third-variable problem and the directionality problem. Explain the actions used in an experiment to avoid these two problems.

  What is the cost of capital for the preferred stock

The preferred stock of Julian Industries sells for S36 and pays $3.00 in dividends. The net price of the security after issuance costs is $32.50. What is the cost of capital for the preferred stock

  Strategy decisions differ between multinational companies

How do management practices, HR policies, and strategy decisions differ between multinational companies and local companies? Identify some cultural, legal, political, and financial issues this multinational company may have based on their environmen..

  What rate of return would she have earned for the past year

If Joan sold the bond today for $971.38, what rate of return would she have earned for the past year?

  In this assignment to be completed individually the

overview planning for retirementin this assignment to be completed individually the objective is to make plans for

  Define the take-it-or-leave-it option

The analysis surrounding Figure assumes that public schooling is a "take-it-or-leave-it" option. That is, individuals are not allowed to supplement public.

  Did luxury tax yield the equity outcome initially expected

Also show a 50% drop i boat sales, after the imposition of the luxury tax. Did the luxury tax yield the equity outcome initially expected? Why?

  Discuss the pros and cons of using the past performance

Discuss the pros and cons of using the past performance of stocks and bonds as a means of predicting future performance, and make at least one recommendation for making this technique more accurate.

  .what are three methods for estimating cost of common stock

.What are three methods for estimating the cost of common stock from retained earnings? Which of these methods provides the most accurate and reliable estimate?

  Assuming this is her only source of income and her marginal

marissa participates in her employers nonqualified deferred compensation plan. for 2013 she is deferring 15 percent of

  Define comparison of borrowing costs based on annual percent

Define Comparison of borrowing costs based on annual percentage yield and the bond has a 20-year life

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