What is the bond duration

Assignment Help Business Economics
Reference no: EM132115806

A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond's price? b) What is the bond's duration? c) Use the duration to calculate the effect on the bond's price of a 0.2% decrease in its yield.

Reference no: EM132115806

Questions Cloud

What is a price cap : What is a price cap? Why might it be a more effective way of regulating monopoly than rate of return regulation? The response must be typed.
Compare the consumer surplus and producer surplus : Compare the consumer surplus, producer surplus, and deadweight loss that arise from average cost pricing with those that arise from profit-maximization pricing.
Protection for minority factions within the bargaining units : The _____ added some protection for minority factions within the bargaining units.
Do any of these firms produce a good or service : Canada Post has a monopoly on residential mail delivery. Pfizer Inc. makes Lipitor, a prescription drug that lowers cholesterol. Rogers Communications.
What is the bond duration : a) What is the bond's price? b) What is the bond's duration? c) Use the duration to calculate the effect on the bond's price of a 0.2% decrease in its yield.
What is jackie minimum efficient scale : On Jackie's LRAC curve, what is the average cost of producing 40, 75, and 85 rides a week? What is Jackie's minimum efficient scale?
Explain the concept of litigating unemployment claims : Briefly explain the Federal Service Labor-Management Relations Act. Explain the concept of litigating unemployment claims.
Why is avalon long-run decision riskier : A Bakery on the Rise Some 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are concerns.
What type of cost is your expenditure on tickets : The Sunk-Cost Fallacy You have good tickets to a basketball game an hour's drive away. There's a blizzard raging outside, and the game is being televised.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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