How does duration differ from maturity

Assignment Help Macroeconomics
Reference no: EM13317521

What are the two different general interpretations of the concept of duration, and what is the technical definition of this term? How does duration differ from maturity?

Reference no: EM13317521

Questions Cloud

Where is the wien peak in this star s blackbody curve : A white dwarf star has surface temperature 20 kK. Where is the Wien peak in this star s blackbody curve
What is the present value of each cash flow discounted : A one-year, $100,000 loan carries a coupon rate and a market interest rate of 12 percent. The loan requires payment of accrued interest and one-half of the principal at the end of six months. The remaining principal and the accrued interest are due a..
Determine the probability that there will be hurricane : A 10-year hurricane is subjected to occur at a given region. Determine the probability that: a) Only one such hurricane occurs within the next 10 years; b) no such hurricane occurs within the next 10 years
What is the duration of the coupon bond if the current : Two bonds are available for purchase in the financial markets. The first bond is a two-year, $1,000 bond that pays an annual coupon of 10 percent. The second bond is a two-year, $1,000 zero-coupon bond.
How does duration differ from maturity : What are the two different general interpretations of the concept of duration, and what is the technical definition of this term? How does duration differ from maturity?
How do interest rate changes affect the value of bank : What is the difference between book value accounting and market value accounting? How do interest rate changes affect the value of bank assets and liabilities under the two methods? What is marking to market?
What is the liquidity premium on the four-year treasury : The Wall Street Journal reports that the rate on three-year Treasury securities is 5.25 percent and the rate on four-year Treasury securities is 5.50 percent. The one-year interest rate expected in three years
What are the distinct features and special qualities : How is the history of Russia reflected in the history, use and conceptualization of the Kremlin? How was the Kremlin perceived differently in different epochs? What kind of values did Kremlin symbolize and represent?
How does the liquidity premium theory of the term structure : How does the liquidity premium theory of the term structure of interest rates differ from the unbiased expectations theory? In a normal economic environment

Reviews

Write a Review

Macroeconomics Questions & Answers

  Discuss a hypothetical economy where both the price

Suppose the following equations discuss a hypothetical economy where both the price level and interest rates are fixed.

  What factor to use for the length of the demand lag

Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? Explain. Is the distinction between "intra-industry trade" and "inter industry t..

  Illustrate what is offshoring of white-collar service jobs

Illustrate what is offshoring of white-collar service jobs, and how does it relate to international trade. Why has it recently increased.

  When the whole commercial banking system can lend out money

In a multibank system, an individual bank makes loans only up to the level of its excess reserves, while the whole commercial banking system can lend out money that is a multiple of the original bank's excess reserves. Why is there this difference..

  Find the profit maximizing price and level of production

Suppose you are a manager of a monopolistically competitive company, and your demand and cost functions are given by Q=20-2P and C(Q) = 104 - 14Q + Q^2

  Explain the concept of adverse possession

After a two-year testing period, Pat prepared the patent application to patent the device, and then found that just a month earlier one of Pat's testing customers had patented the device. Pat demanded that the customer give up the patent to Pat, ..

  How might the market power of quad plex cinema be measured

Perfect Competition If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development What condition would encourage research and develo..

  What is the cross-price elasticity of demand between perf

Data collected in the imaginary economy of Kharkeez reveals that when the price of a bork increased by 20%, the quantity of bork sold decreased by 30%, and the quantity of perf demanded increase by 15%

  Explain why would economists be very concerned if the annual

Explain why would economists be very concerned if the annual interest payments on the debt sharply increased as a percentage of GDP.

  What is the price elasticity of deman for this service

If the local car wash changes its price for a supreme wash from $13 to $16 and the number of customers change per day from 50 to 40, what is the price elasticity of deman for this service? Is the demand for this service relatively elastic or rela..

  What is the set of pareto optimal allocations

Amaranda and Bartolo consume only two goods, X and Y. They can trade only with each other and there is no production. The total endowment of good X equals the total endowment of good Y.

  Evaluate the change in costs

Assume industry abatement costs rise from $850 million in 2004 to $1,000 million in 2005 in nominal terms and that CPI is 100 in 2004 and 106 in 2005.

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