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

Assignment Help Financial Management
Reference no: EM13911293

What is the duration of a bond with three years to maturity and a coupon of 7.9 percent paid annually if the bond sells at par? (Do not round intermediate calculations and round your final answer to 5 decimal places. (e.g., 32.16161))

Reference no: EM13911293

Questions Cloud

Select one strength, one weakness : Select one strength, one weakness, one opportunity, and one threat from the Ben & Jerry's SWOT analysis shown in Figure.
How do you think miss and dss assist altitude online : How do you think MISs and DSS assist Altitude Online top executives in guiding the direction of the company?
Fund the seminar at the same level into infinity : A foundation supports an annual seminar on campus by using the earnings of a $50,000 gift. It is felt that 10% interest will be realized for 10 years, but that plans should be made to anticipate an interest rate of 6% after that time. What uniform an..
Selling american made goods to french customer : You are selling American made goods to a French customer, but for competitive reasons you must do the deal in Euros. In 6 months, you expect to receive euro 800,000. Do you hedge your receivable and how?
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 7.9 percent paid annually if the bond sells at par?
Accounting software package : Topic: Comparison of Sage 50 Accounting and at least one other accounting software package.(research paper at least 3 source and 2 pages)
Prepare stockholders equity section of the balance sheet : Wells Fargo & Company, headquartered in San Francisco, is one of the nation’s largest financial institutions. Suppose it reported the following selected accounts (in millions) as of December 31, 2014. Retained earnings $40,000 Preferred stock 8,333 C..
What is the main result of each of the three phases : What is the main result of each of the three phases of the strategic marketing process?
Based on the trade-off theory of capital structure : Suppose that an investor owns 10% of the stock of firm L, and assume that this investor can lend and borrow at the same interest rate as firm L, that is, at 12% (recall the assumption of perfect markets). Based on the trade-off theory of capital stru..

Reviews

Write a Review

Financial Management Questions & Answers

  Develop analysis of three investments

Using the situation from SLP2, recall that you are deciding between two investments. However, they each require a different initial investment amount. Real estate development. This is a risky opportunity with the possibility of a high payoff, but als..

  Suppose an investment offers to double your money

Suppose an investment offers to double your money in 18 months (don’t believe it). What rate of return per quarter are you being offered?

  Correct discount rate for cash flows from developed wells

An oil company is drilling a series of new wells that are adjacent to an existing oil field. About 20% of the new wells will be dry holes and will produce zero oil. If the wells do, in fact, strike oil, they have different expected values. What is th..

  Maintaining asset value

One of the functional responsibilities assumed by central banks is that of "maintaining asset value." What does this term mean? Should it be a responsibility of central banks?

  Free cash flow for the most recent year

Manzell Corp.'s free cash flow (FCF) for the most recent year is $470 (million). FCF is expected to grow by 18% next year, by 11% the year after that, and by 3% per year thereafter. Manzell's WACC is 10%. The estimated enterprise value is $__________..

  What would be your average annual rate of return

Two years after the bonds were issued, the going rate of interest on similar bonds fell to 8 percent. At what price would the bonds sell and If you bought the bond on the issue date at the issue price and expected to hold it until it matures on Dec..

  The expected return for the general market

The expected return for the general market is 12.5 percent, and the risk premium in the market is 8.8 percent. Tasaco, LBM, and Exxos have betas of 0.878, 0.666, and 0.563, respectively. What are the appropriate expected rates of return for the three..

  What is the size of the quality spread differential

Firm A and Firm B need to raise $100,000,000 of debt to pay for their projected capital expenditures. Firm A is a blue chip company with a high credit rating in the corporate debt market. It can borrow funds at either 10.75% fixed rate or at LIBOR + ..

  Which is required rate of return expected by suppliers funds

The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital. Nevertheless, the guidelines failed to fully demonstrate the essence of the cost of debt and eq..

  Fixed cost per unit under the pessimistic case scenario

Scout's Manufacturing Co. is introducing a new product. The company expects to sell 2,340 units, give or take 10%. The expected variable cost per unit is $8.77 and the expected fixed costs are $12,285. The company bases its sensitivity analysis on th..

  What was the annual increase in selling price

In January 2007, the average price of an asset was $28,658. 7 years earlier, the average price was $20,808. What was the annual increase in selling price? In percentage form

  From the books of agarwal from books of aggarwal bors

from books of aggarwal bors following information has been extracted rs. sales 240000 variable costs 144000 fixed costs

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