User Account

All Pages

Macaulay duration and modified duration

Assignment Help Business Economics
Reference no: EM132281259

A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.00 percent and the bond has a yield to maturity of 5.43 percent. What are the Macaulay duration and modified duration? (Use the duration function in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.)

Macaulay duration:

Modified duration:

Reference no: EM132281259

Questions Cloud

Should chen buy the new machine : Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 10 years.
How will you best leverage your sponsorship : How will you BEST leverage your sponsorship to promote your organization to the Bowling Green community - maximize your sponsorship investment
Factor of correlation coefficient : How do investors make decision to invest into a portfolio which is the combination of 2 risky assets through the factor of correlation coefficient?
Possessions and possibly dependents in the years to come : Once you're out there in the working world, how do you think you'll go about obtaining life insurance to start, and as you acquire more property
Macaulay duration and modified duration : A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.00 percent and the bond has a yield
What are the project cash flows : What are the project's cash flows? Should the project be undertaken if the firm's cost of capital is 11 percent?
Would you lean more toward rehabilitation : What is an example of a situation that might be extremely difficult to judge that could make you change your sentencing goals or philosophical rationales?
How can someone be tried six times for the same crime : How can someone be tried six times for the same crime? Under which Amendment would a defendant be protected from double jeopardy?
Calculate an annual advertising intensity ratio : Marketing Capabilities: Quantitatively/qualitatively assess your company's ability to build and promote its brand(s), customer service abilities, merchandising.

Reviews

Write a Review

Business Economics Questions & Answers

  About the advertising

Your company sells expensive, branded fountain pens. There are 100,000 people aware of your pens. Each of these 100,000 peoples has his or her own willingness to pay for your pens. This willingness to pay numbers are uniformly distributed between $0 ..

  Effect of restrictive fiscal policy on the level of output

Explain the effect of restrictive fiscal policy on the level of output, prices, and interest rates for (i) the Keynesian AS-curve case, (ii) the classical AS-curve case, and (iii) the intermediate case.

  What is the appropriate criterion

A local restaurant initially estimated a large demand for dining in a space near a floor-to-ceiling fish tank. The cost of the tank is $8 million. Does this statement reflect the appropriate decision-making criteria? What is the appropriate criterion..

  What is the long run equilibrium price

Suppose a representative firm with total costs given by the expression TC = 100 + 4q + q2 operates in a perfectly competitive market for avocadoes, where q is the quantity of avocadoes in bushels. What is the long run equilibrium price? What is the s..

  Portion of trade is intra-firm in nature

Do multinational corporations (that operate in several countries) distort the "trade surplus/trade deficit" figures for the U.S. given that a portion of trade is intra-firm in nature? Explain why or why not.

  Manufacturer has a fixed proportions production function

Suppose a widget manufacturer has an infinitely substitute production function, q=3L+2K, given that MPL= 3, MPK= 2. If both the wage rate and rental rate are $10. What is the cost-minimizing combination of L and K to produce 60 units of output. How m..

  Marketing strategies to reach differ from strategies

Marketing strategies to reach consumers differ from strategies designed to reach businesses because ________.

  Theoretical model of the inter temporal budget constraint

The theoretical model of the inter temporal budget constraint for the U.S. economy as a whole suggests that the most common pattern seems to be that:

  What effect will this have on the US aggregate demand curve

Suppose that OPEC raises oil prices by 50 % in 1998. What effect will this have on the US aggregate demand curve? On the US short run aggregate supply Curve?

  Beliefs or situations might cause a consumer to demand

What events, beliefs or situations might cause a consumer to demand and buy fewer goods and services this month than last month even if prices have not changed?   (note the second, third and fourth words are plural)

  Discuss your perspective on the use of game theory

Discuss your perspective on the use of game theory. How do "Nash Equilibrium" and the idea of one "player" impacting another "player" within an organization affect the economic decisions and growth of an organization?

  Why are production possibilities curves ppc

Why are production Possibilities Curves PPC often bowed outward from the origin?

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