What are the macaulay duration and modified duration

Assignment Help Accounting Basics
Reference no: EM132757212

Problem 1: A treasury bond that settles on November 18, 2013, matures on April 30, 2032. The coupon rate is 6.3 percent and the bond has a 5.45 yield to maturity. What are the Macaulay duration and modified duration?

Reference no: EM132757212

Questions Cloud

Explain what is the difference between bond ytm and ytc : McCue Inc.'s bonds currently sell for $1250. They pay a $120 annual coupon. What is the difference between this bond's YTM and its YTC?
How much does marcy need to contribute to retirement fund : Marcy Johnson is planning for her golden years. The details of her retirement plans follow: Expected life span after retirement (in years) 35.
Relevant to philippine social conditions : After the re-'democracy' of the Filipino nation brought about by Corazon Aquino replacing the Marcos dictatorship after a 'peaceful
How much depreciation expense should the Redbirds take : The useful life of the equipment is five years and has no residual value. How much depreciation expense should the Redbirds take in the first year
What are the macaulay duration and modified duration : The coupon rate is 6.3 percent and the bond has a 5.45 yield to maturity. What are the Macaulay duration and modified duration?
What is the yield to maturity and yield to call on bond : June 7, 2013, The Coupon rate on the bond is 5 percent and the price if 113.00. What is the yield to maturity and yield to call on this bond?
Levels of knowledge in judgement of quality : Compare Plato's use of similes to show that there are levels of knowledge with John Stuart Mill's more "ordinary" argument regarding levels of knowledge
What is the modified duration of the bonds : Blue Bank has an inventory of Standard and Poor's equivalent AAA-rated, 8-year zero-coupon bonds with a face value of $250 million. The bonds are currently.
Determine the first payment and value of the last payment : Assuming an interest of 27% n.m. Determine the first payment, the value of the last payment and the composition of the fee or payment

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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