What is the modified duration and macaulay duration

Assignment Help Financial Management
Reference no: EM13909153

What is the Macaulay duration of a 7.6 percent coupon bond with seven years to maturity and a current price of $942.40? What is the modified duration? (Round your answer to 3 decimal places.)

Duration             

  Macaulay           Years 

  Modified           Years  

Reference no: EM13909153

Questions Cloud

Three original, concrete recommendation for improving system : Come up with three concrete recommendations for improving accounting/payroll information system. Make sure you do not just identify the problems, but that you also make very specific recommendations for how you would correct those problems.
The topic is listeria in ready to eat foods : Create an online for a research paper. The topic is "Listeria in ready to eat foods". Please write 5 pages including 6 references
Find both time-average interval and time-average number : Find a closed form solution to J,i piνi, where νi is the rate at which transitions out of state i occur. For each i, find both the time-average interval and the time-average number of overall state transitions between successive visits to i.
Bonds two years ago at a coupon rate : Soprano’s Spaghetti Factory issued 17-year bonds two years ago at a coupon rate of 7.40 percent. If these bonds currently sell for 96.5 percent of par value, what is the YTM?
What is the modified duration and macaulay duration : What is the Macaulay duration of a 7.6 percent coupon bond with seven years to maturity and a current price of $942.40? What is the modified duration?
The arctic national wildlife refuge : The Arctic National Wildlife Refuge (ANWR) has oil and gas reserves. Drilling for these has been a national debate in recent years. Discuss the political, economic, and environmental concerns behind this debate
What is the percentage yield to call for these bonds : Sealord Fisheries issues zero coupon bonds on the market at a price of $179.14 per bond. Each bond has a face value of $1,000 payable at maturity in 20 years. The bonds are callable in 8 years at a call price of $500. Using semiannual compounding, wh..
Differenciate between anabolism and catabolism : Differenciate between anabolism and catabolism. Write the mechanism of the reaction of conversion of glyceraldehyde-3-phosphate to pyruvate.
Code of ethics to provide guidance for an employee faced : code of ethics to provide guidance for an employee faced

Reviews

Write a Review

Financial Management Questions & Answers

  Higher debt ratio and interest expense than firm

Firm A and Firm B have the same total assets, ROA and profit margin (greater than 0). However, Firm B has a higher debt ratio and interest expense than Firm A.

  Calculate the number of shares issued through this IPO

Hughes Technology Corp. recently went public with an initial public offering in which it received a total of $62.15 million in new capital funding. Calculate the number of shares issued through this IPO.

  What is the value of this forward contract

A LONG forward contract that was negotiated some time ago will expire in 2.5 years and has a delivery price of $60. The current stock price underlying this forward contract is $65. The risk-free rate with continuous compounding is 7% for all maturiti..

  Bond rating agencies have invested significant sums of money

Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and non-quantitative factors best predict bond defaults. To recoup those costs, some bond rating agencies have tied their ratings to the purchas..

  Order to create an accurate forecast of sales

The lack of historical data makes it difficult to create a forecast and budget for a new company. Class, how many years of historical sales data do you think are necessary in order to create an accurate forecast of sales? Explain.

  Real estate finance assignment

Real Estate Finance Assignment-Your aunt has already received several loan quotes from different banks. Determine the monthly payment and effective borrowing cost for each loan below by creating a separate worksheet for each $131,600 loan given she p..

  What is the expected return on a portfolio

A stock has a beta of 1.28 and an expected return of 12.6 percent. A risk-free asset currently earns 4.2 percent. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations.

  Farmers sometimes store their grain and wait to sell

Farmers sometimes store their grain and wait to sell at a later date if they think market prices will increase. If they are accurate in their forecasts, this can be a profitable strategy. Let’s look at an example and determine the best course of acti..

  Best estimate of the stocks current market value

Burke Tires just paid a dividend of D0 = $1.50. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the..

  What is the value today of bond with the attributes

If a bond is selling on the open market at $960 is it selling at a premium or discount? List 2 factors that might contribute to this selling price. What is the value today of a bond with the below attributes? What is the value of $50,000 invested at ..

  Is it fair for the banker to suggest that cartwright

Someone told you that the table on page 45 of the Cohen Finance Book does not apply to companies like Microsoft or Apple that have much larger profit ratios, not the 1.6% displayed in C4. Is this true or false? Explain.

  Receivables investment-what are the days sales outstanding

McDowell Industries sells on terms of 3/10, net 25. Total sales for the year are $1,561,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 74 days after their purchases. Assume 365 days in year for ..

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