What circumstances would duration equal maturity

Assignment Help Financial Management
Reference no: EM13766318

We have the Hargrove par bond paying a coupon rate of 8% and having a maturity of 20 years. If the coupon rate were to alter to 4%, what would the new duration be? Under what circumstances would duration equal maturity?

Reference no: EM13766318

Questions Cloud

What would be the nominal cost of that credit : Lamar Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 55; and it currently pays after 5 days and takes discounts. Lamar plans to expand, which will require additional financing. Assume 365 days in year for your calculation..
Variable manufacturing overhead rate : Jill Liu, the cotroller, is concerned that an increasing number of clients are waiting until the last minute to send in their final orders, causing congestion and an increase in the variable manufacturing overhead rate because of higher overtime a..
Multiplicative lcgs-compute zi : how can solve that Consider the LCG defined by m = 16, a = 5, c = 3, and Z0 = 7. Compute until Z19 and verify that when i = 16, the exact the same order will show up. Show all results in a table.
Evaluate the natural settings of the test environment : Evaluate the natural settings of the test environment for Web users. Note: Test environments are usually labs designed to conduct testing. Natural settings refer to the user's normal operating environment.
What circumstances would duration equal maturity : We have the Hargrove par bond paying a coupon rate of 8% and having a maturity of 20 years. If the coupon rate were to alter to 4%, what would the new duration be? Under what circumstances would duration equal maturity?
Firm declared a dividend-information effect : A firm declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet the stock declined by 3% the day of the announcement. Another firm declared a dividend of $2 per share, which was the same as the prior year, and its st..
Issue related career goals : What are your reasons for attending college?
How much did he pay each month : Mr. Jenson bought a set of living room furniture for $5,645. He paid $500 at first. He then paid the remainder in equal payments, every month for seven mouths. How much did he pay each month?
Journalize the transactions in the general journal : Instructions: Journalize the transactions in the general journal

Reviews

Write a Review

Financial Management Questions & Answers

  Residual distribution model

New product expansion with 15 million investments in new machinery. Using current 30% debt to total assets ratio for capital structure to maintain dividend policy of annual distribution 25% of net income. The net income is 8 million. How much externa..

  You recently graduated from college and your job search led

you recently graduated from college and your job search led you to east coast yachts. since you felt the companys

  Calculate the value of the real option

Calculate the value of the real option by waiting one year to decide and apart from real options, discuss 3 qualitative factors that the company should consider when making its decision on accepting the new project.

  Spot exchange rate for the canadian dollar

Suppose the spot exchange rate for the Canadian dollar is Can$1.04 and the six-month forward rate is Can$1.06. Which is worth more, a U.S. dollar or a Canadian dollar?

  Which currency is overvalued in the current spot market

Mid-size cars rent for 70€ per day in Berlin and 60£ per day on London. The current spot market exchange rate is 1.27 €/£. Using rental cars as the reference price, what is the implied PPP exchange rate in €’s per £? Which currency is overvalued in t..

  Explain what is the equivalent annual cost of the washer

What is the equivalent annual cost of the washer, if the firm uses straight-line depreciation? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

  What home insurance coverage amount would you recommend

Michelle and Ken Dunn, both in their mid-20s, have been married for 4 years and have two preschool-age children. Ken has an accounting degree and is employed as a cost accountant at an annual salary of $62,000. They’re now renting a duplex but wish t..

  Suppose a zero growth stock is expected to pay

Suppose a zero growth stock is expected to pay a $0.5 dividend every quarter and the required return is 5% with quarterly compounding. What is the price?

  Significant abnormal negative returns

Some firms had significant abnormal negative returns, but most didn't. Abnormal negative returns were short lived, meaning their stock prices returned to normal after a short period of time.

  Forecasting interest rates based on prevailing conditions

Forecasting Interest Rates Based on Prevailing Conditions - discuss the impact of each of the factors on your opinion. Offer some logic or current reference(s) to support your answer. Which factor do you think will have the biggest impact on intere..

  Please show formulasa balance sheet shows a total of

please show formulas.a balance sheet shows a total of noncallable 45 million. long-termdebt with a coupon rate of 7.00

  Expanding rapidly-currently needs to retain all of earning

Micro Tech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Micro tech to begin paying dividends, beginning with a dividend of $1.50 coming 3 years from to..

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