How much do you expect the price of the asset

Assignment Help Finance Basics
Reference no: EM13265884

You own a fixed income asset with a MaCaulay duration of 5 years. If the level of required yields, which is currently at 8%, goes down by 0.10%, how much do you expect the price of the asset to change (in percentage terms)?

Reference no: EM13265884

Questions Cloud

What is max data rate possible for telephone circuit : What is the maximum data rate possible for a standard telephone circuit with an SNR of 1023 and BW of 3 KHz using 8 bits per symbol
How many photons are emitted in this pulse : A large laser emits an intense pulse of light delivering an energy of 5020J in 1.28×10-2s. how many photons are emitted in this pulse
Find the new angular speed of the merry-go-round : A playground merry-go-round of radius R = 1.60 m has a moment of inertia I = 275 kg · m2 and is rotating at 8.0 rev/min about a frictionless vertical axle. What is the new angular speed of the merry-go-round
Calculate the baud rate and the bit rate : A modulator transmits symbols, each of which has 64 different possible states, 15,000 times per second. Calculate the baud rate and the bit rate.
How much do you expect the price of the asset : You own a fixed income asset with a MaCaulay duration of 5 years. If the level of required yields, which is currently at 8%, goes down by 0.10%, how much do you expect the price of the asset to change (in percentage terms)?
What is the maximum data rate that can be transmitted : A radio channel has a bandwidth of 10 KHz and a SNR of 15 dB. What is the maximum data rate that can be transmitted: (a) Using any system (b) Using a code with 64 possible states
Find the duration of a 6% coupon bond making annual coupon : Find the duration of a 6% coupon bond making annual coupon payments if it has four years to maturity and a yield to maturity of 5%. (assuming a face value of $1,000)
Determine the calorie content of candy : A 15-g sample of the candy is placed in a small aluminum container of mass 0.325 kg filled with oxygen. Determine the Calorie content of 69g of candy
Compute the radius of the orbit : A Hydrogen atom has one proton in the nucleus and one electron in the shell. In a classic model of the atom, What is the radius of the orbit

Reviews

Write a Review

Finance Basics Questions & Answers

  Compare the eective annual rate on these investments

Here are some alternative investments you are considering for one year. (i) Bank A promises to pay 8% on your deposit compounded annually. (ii) Bank B promises to pay 8% on your deposit compounded daily. Compare the eective annual rate (EAR) on..

  Determine the actions minimize cash flow

Determine what actions can you take to minimize the cash flow problems that were identified in the simulation?

  What does the debt-equity ratio need to be

The tax rate is 34 percent. What does the debt-equity ratio need to be for the firm to achieve its target WACC?

  Computation of the price of the treasury bill

Computation of the price of the Treasury bill and What price would you pay in dollars to purchase this Treasure bill

  Calculate annual loan payment

Joan Messineo borrowed $15,000 at a 14 percent annual interest rate to be repaid over three years. The loan is amortized into three equal annual end-of-year payments.

  Assess the profit potential using marginal analysis

One question that arose during the meeting was about how the company's profitability in their toothpaste division would be impacted by the expansion. The Board asked you to assess profit potential using marginal analysis.

  What are the percentage return on your investment

One year ago, you puchased 74 shares of ABC stock for $21.6 per share. During the year, you received a dividend of $2.6 per share. Today, you sold all your shares for $28.7. What are the percentage return on your investment?

  What is the projects discounted payback period

What is the traditional payback period (PB) of a project that costs $450,000 if it is expected to generate $120,000 per year for five years? If the firms required rate if return is 11 percent, what is the projects discounted payback period (DPB)?

  Change in the nature of the chicken contracts

What happened that changed the nature of the chicken contracts.

  Stock valuation beneath equilibrium situation

Stock valuation beneath equilibrium situation and Assuming the stock market is efficient and the stocks are in equilibrium

  Investment analysis problems

The largest retail brokerage company in the United State, America's Best Investment Company, has hired you to advise clients on investments and to meet their individual financial objectives.

  What was the ebitda coverage ratio

The firm had no amortization charges. What was the EBITDA coverage ratio?

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