What is the duration of bond with three years to maturity

Assignment Help Financial Management
Reference no: EM13913330

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? The price of the bond is $1,000.

Reference no: EM13913330

Questions Cloud

Define the term quality and discuss why it is important : In your own words, define the term "quality", and discuss why it is important for companies to improve quality of goods and services
Depreciated straight-line to zero : Your firm is contemplating the purchase of a new $550,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $54,000 at the end of that time. You will save $290,000 before..
How does toyota view of sustainable mobility contribute : How does Toyota's approach to social responsibility relate to the three concepts of social responsibility described in the text (profit responsibility, stakeholder responsibility, and societal responsibility)?
What is the value of atlantic northern : Atlantic Northern Inc. pays an annual dividend rate of 8.00% on its preferred stock that currently returns 10.72% and has a par value of $100.00. What is the value of Atlantic Northern Inc.'s stock? Suppose, due to high inflation, interest rates rise..
What is the duration of 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? The price of the bond is $1,000.
Same length and of same material : Two wires A and B are of same length and of same material having radii r1 and r2 respectively. Their one end is fixed with a rigid support and at the other end equal twisting couple is applied. Then ratio of the angle of twist at the end of A and ..
Before taxes per year in order processing costs : Your firm is contemplating the purchase of a new $560,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $56,000 at the end of that time. You will save $280,000 before..
Free cash flow is calculated as : Free cash flow is calculated as
Approximate amount stolen during the past : What was the approximate amount stolen during the past year.What would be your recommendations to the owner?

Reviews

Write a Review

Financial Management Questions & Answers

  Dividend initiation and stock value a firm

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $.90 per share in 2 years. This dividend will grow at 13 percent indefinitely. Using a 15 percent discount rate, compute the value of this..

  What single annual rate of interest

Bill Christenson deposited $40,000 in his credit union on September 23, 1993. Recently, while going through some papers he discovered the account. How much should Bill have in this account on September 23, 2015? If Bill had invested in a twenty-two y..

  In a capital intensive but mature industry

In a capital intensive but mature industry such as steel growing about 5% per year on average but facing cyclical demand what would be the appropriate financing mix to replace a blast furnace costing $300 million? Where would a steel firm seek financ..

  Explain interaction between carson company and rimsa savings

Rimsa Savings is a savings institution that provided Carson Company with a mortgage for its office building. Rimsa recently offered to refinance the mortgage if Carson Company will change to a fixed-rate loan from an adjustable-rate loan.

  Zero-coupon bond with exactly same market value and duration

Suppose you have a short position in a 30-year 6%-coupon bond and a long position in a zero- coupon bond with exactly the same market value and duration. If all zero rates fall by 20 basis points, will your net position rise or fall in value? Explain..

  Calculate the firms operating cycle-cash conversion cycle

Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm has annual sales of $3.5 million and cost of goods sold of $2.4 million. Calculate t..

  Financial management for profit and non profit organisations

Prepare a report of 7 to 8 pages on Financial Management For Profit and Non Profit Organisations.Financial Management in Non-Profit versus Financial Management in for Profit Organisation.Certain Issues in Financial Management in Non-Profit Organisati..

  What is the present equivalent cost of the investment

A machine at a bottling plant that has a first cost of $150,000, operating and maintenance costs of $17,500 per year, and an estimated net salvage value of $25,000 at the end of thirty years. Assume an interest rate of 8%. What is the   present equiv..

  What is your estimate of the stocks current price

A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 25% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of..

  Calculate the expected return of your portfolio

Calculate the expected return of your portfolio. Calculate the portfolio beta. Given the information above, plot the security market line on paper. Plot the shares from your portfolio on your graph.

  Identify the top companies in the industry

Identify an industry to focus on. Explain why you chose this industry - Identify the top companies in the industry

  What price change would lead to a margin call

A company enters into a futures contract to sell 5,000 bushels of wheat for 750 cents per bushel. The initial margin is $3,000 and the maintenance margin is $2,000. What price change would lead to a margin call? Under what circumstances could $1,500 ..

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