What is the duration of a bond with three years to maturity

Assignment Help Financial Econometrics
Reference no: EM13335565

What is the duration of a bond with three years to maturity and a coupon of 7.5 percent paid annually if the bond sells at par?

Reference no: EM13335565

Questions Cloud

Determine what is the npv of installing the equipment : 1) The equipment costs $250,000. 2) It costs $200,000 per year to operate. 3) It has an economic life of five years and is depreciated using the straight-line method.
Explain the value of e°cell for a voltaic cell : Calculate the value of E°cell for a voltaic cell described in each of the following. Enter your answer with 3 significant digits. Enter scientific notation as 1.23E4.
Calculate hillarys npv with the abandonment option : You are planning to produce a new action figure called "Hillary". However, you are very uncertain about the demand for the product. If it is a hit, you will have net cash flows of $50 million per year for three years
Do you think politicians are very interested in curtailing : If the power of special interest were reduced for example, through the adoption of supra-majority voting rule, would economic efficiency improve? How would contributions to political campaigns be affected? Do you think politicians are very interested..
What is the duration of a bond with three years to maturity : What is the duration of a bond with three years to maturity and a coupon of 7.5 percent paid annually if the bond sells at par
Why does representative democracy often tax some people : Why does representative democracy often tax some people in order to provide benefits to others? When governments become heavily involved in tax-transfer activities, how will this involvement affect economic efficiency?
Estimate the total fixed cost per month : Estimate the total fixed cost per month and what is the contribution margin per unit made and sold - Estimate the variable cost per unit
What is the projects expected npv assuming average risk : What is the project's expected (i.e., base case) NPV assuming average risk. (Hint: The base case net cash flows are the expected cash flows in each year.) how is the PVIFA calculated.
Find the acceleration of the center of mass of the cylinder : A string is wrapped around a solid cylinder of mass M and radius R and pulls horizontally with forceT from the top of the cylinder. FIND the acceleration of the center of mass of the cylinder

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Determine what is geometric return over the period

Your grandfather invested $1,000 in a stock 27 years ago. Currently the value of his account is $226,000. What is his geometric return over this period

  Determine what is the price of these three bonds in dollars

a Treasury note quoted at 98:25, a corporate bond quoted at 103.20, and a municipal bond quoted at 101.85. If the Treasury and corporate bonds have a par value of $1,000

  Organizational plan and business philosophy

Business decision, organizational plan, business philosophy, policy decision, or concept related to the class.

  Determine what is capitals after-tax wacc

If the returns required by investors are 10 percent, 13 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC. Assume that the firm's marginal tax rate is 40 percent.

  What is present value of a security that will pay in 20years

What is the present value of a security that will pay $12,000 in 20 years if securities of equal risk pay 5% annually

  Summarize and execute detailed description of the securities

Students will construct a well-diversified portfolio using an initial investment stake of $50,000 (the portfolio should use 95% of the fund, but they may not use more than $50,000).

  What is cryptons cost of capital for the firms tax rate

Crypton Electronics has a capital structure consisting of 45% common stock and 55% debt. A debt issue of $1,000 par value, 6.2% bonds that mature in 15 years and pay annual interest will sell for $978.

  Determine appropriate after-tax cost of new debt for triplin

Triplin Corporation's marginal tax rate is 35%. It can issue 10-year bonds with an annual coupon rate of 7% and a par value of $1,000. After $12 per bond flotation costs, new bonds will net the company $966 in proceeds

  Determine the amount of goodwill that resulted

On May 28, 2013, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $540 million. The fair value of Harman's identifiable tangible and intangible assets totaled $596 million

  What is the present value if the payments are an annuity due

Suppose you are going to receive $14,000 per year for 9 years. The appropriate interest rate is 11 percent.  What is the present value of the payments if they are in the form of an ordinary annuity

  What would be giants component cost of preferred stock

Giant has preferred stock selling for 125 percent of par that pays a 10 percent annual coupon. What would be Giant's component cost of preferred stock

  Calculate the best-case and worst-case npv figures

We are evaluating a project that costs $1,582,000, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project.

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