The bond matures in 18 months and the next coupon will be

Assignment Help Finance Basics
Reference no: EM13568748

A Treasury bond has a coupon rate of 6% per annum (the coupons are paid semiannually) and a semiannually compounded yield of 4% per annum. The bond matures in 18 months and the next coupon will be paid 6 months from now. Which number below is closest to the bond's Macaulay duration?

A. 1.023 years

B. 1.457 years

C. 1.500 years

D. 2.915 years

Reference no: EM13568748

Questions Cloud

What revenues and costs are probably differential for the : beige computers operates retail stores in both downtown city and suburban mall location ns. the company has two
A five-year corporate bond paying an annual coupon of 8 is : a five-year corporate bond paying an annual coupon of 8 is sold at a price reflecting a yield to maturity of 6. one
Consider a savings account that pays an annual interest : consider a savings account that pays an annual interest rate of 8. calculate the amount of time it would take to double
The company has an agreement with a bank that allows the : you have just been hired as a new management trainee by earrings unlimited a distributor of earring to various retail
The bond matures in 18 months and the next coupon will be : a treasury bond has a coupon rate of 6 per annum the coupons are paid semiannually and a semiannually compounded yield
An investor buys a treasury bill maturing in 1 month for : an investor buys a treasury bill maturing in 1 month for 987. on the maturity date the investor collects 1000.
A zero-coupon bond with a maturity of 10 years has an : a zero-coupon bond with a maturity of 10 years has an annual effective yield of 10. what is the closest value for its
What is the present value of 100 to be received in 3 years : 1. what is the future value of an initial 100 after 3 years if it is invested in an account paying 10 percent annual
Using a 22 discount rate compute the net present value of : anita vasquez received 100000 from her mothers estate. she placed the funds into the hands of a broker who purchased

Reviews

Write a Review

Finance Basics Questions & Answers

  You believe you have suitable managerial skills to run

a few years ago a friend of yours started a small business that develops gaming software. the company is doing well and

  What is the cross-rate for british pounds

What is the cross-rate for British pounds in terms of Canadian dollars?

  What will be the balance in accounts receivable

A firm has forecasted sales of $4,500 in April, $3,000 in May, and $5,000 in June. All sales are on credit. 30% is collected in the month of the sale, and the remainder in the following month.What will be the balance in accounts receivable at the ..

  Foreign corporate tax rate

Suppose England raised its corporate tax rate by 1 percentage point from 40% to 41%. How would this increase affect the economics of a U.S.-U.K. foreign expansion project?

  What are the big concerns going forward

How do you explain this contradiction in interest rate effects and what are the big concerns going forward?

  Alpha products plans to finance

Alpha Products plans to finance its capital budget for next year by selling $50 million of 11 percent coupon rate bonds, with each bond having a maturity value (M) of $1,000 and a 20-year maturity.

  How are the members of the board of directors of a

how are the members of the board of directors of a corporation chosen and to whom do these board members owe their

  The market rate of return is 1950 percent what will one

lb moore has 40000 shares of common stock outstanding. the firm just paid an annual dividend of 2.70 per share on this

  Mr alert tucker of pleasant valley ohio is an investor who

mr. alert tucker of pleasant valley ohio is an investor who is interested in allocating part of his portfolio to

  It has been said that a company that deserves a union gets

it has been said that a company that deserves a union gets one suggesting that if proper leadership and motivation

  The primary motive of an enterprise is to make a profit

A skunkworks is a group of people who split off from a company to use its proprietary technology and trade secrets for starting their own enterprise.

  What does the beta of the second stock have to be

You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.92. What does the beta of the second stock have to be if you want the portfolio to have a beta of 0.76?

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