User Account

All Pages

Find the new price of the bond

Assignment Help Finance Basics
Reference no: EM131877537

You have purchased a bond for $973.02. The bond has a coupon rate of 6.4%, pays interest annualy, has a face value of 1000, 4 years to maturity, and yield to maturity of 7.2%. The bond's Macauley duration is 3.6481 years. You expect that interest rate will fall by 0.2% later today. Use modified duration to find the approximate percentage change in the bond's prce. Use your answer to find the new price of the bond.

Reference no: EM131877537

Questions Cloud

Describes two organizations that perform work : Create a Web page that uses a table and describes two organizations that perform work related to Internet/Web standards and guidelines
Total sales figure for a month : What is the amount of GST that has been collected on the sales? During the same month, the business has made purchases of $92 400
Explain how hr has evolved throughout the process : HR has moved from an administrative function to a transformational function. This change is based on automation HR functions through an HRIS system.
Create a web page about your favorite movie : Create a Web page about your favorite movie that uses a two-column table containing details about the movie. Use CSS to style table border and background color.
Find the new price of the bond : Use modified duration to find the approximate percentage change in the bond's prce. Use your answer to find the new price of the bond.
Describe what motivates the character you are analyzing : How a reader from another country or culture might potentially draw different conclusions about the character you choose to analyze from (TFA).
What will be the total npv of the exhibitions : What will be the total NPV of the exhibitions that you end up organizing?
Write xhtml to create a table with three rows and two column : Use CSS to configure a table that has a border around both entire table and the table cells. Write the XHTML to create a table with three rows and two columns.
Discuss how you evaluated the presentations of others : What did you find most challenging about creating and presenting, in written and oral form, your proposal?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine your target sample size based on costs and time

Determine your sampling technique. Determine your target sample size based on costs, time, precision, and the desire to reduce possible sampling error.

  Amount of credit sales during may

On April 30, Victor Services had an Accounts Receivable balance of $31,200. During the month of May, total credits to Accounts Receivable were $66,400 from customer payments. The May 31 Accounts Receivable balance was $25,000. What was the amount ..

  Innovation strategy using p-g securities

Write a paper of no more than 350 words that describes and evaluates P&G's innovation strategy using P&G Securities and Exchanges Commission Filing for 2014.

  How would the bond investment be classified on league up

Accounting for bond investments League Up & Co. owns vast amounts of corporate bonds. Suppose League Up buys $700,000 of CoteCorp bonds at face value.

  Create a disbursement float or a collection float

Calculating Float. You have $12,700 on deposit with no outstanding checks or uncleared deposits. If you deposit a check for $2,400, does this create.

  Develop financial plan for patton-fuller community hospital

Develop a financial plan for Patton-Fuller Community Hospital for the upcoming year using the 2010 Operating Budget Assumptions memo and the 2009 Operating Budget in the Patton-Fuller Community Hospital Virtual Organization.

  Computation of arbitrage profit

Computation of arbitrage profit and what is the arbitrage opportunity and what would you do as an arbitrager and when would you stop doing it

  Relationship between interpretation and truthtelling

What is the relationship between interpretation and truthtelling?

  Calculating expected return based on the following

calculating expected returnbased on the following information calculate the expected return.state of economyprobability

  Find out how researchers have defined and measured variables

Select a subject term that is of interest to you and find three recent empirical articles dealing with the topic

  What is the price of 1 million ounces of gold produced in

suppose the current price of gold is 280 per ounce. hotshot consultants advises you that gold prices will increase at

  Major competitors in the healthcare industry

Tenet Healthcare and HCA Holdings Inc. are major competitors in the healthcare industry. Visit the Web sites below to review the Income Statements for each healthcare organization.

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