What should be the face value of a bond

Assignment Help Mathematics
Reference no: EM131637988

Question: What should be the face value of a 5-year bond with 10% yield, paying $10 annual coupons to have duration 4? Find the range of durations that can be obtained by altering the face value, as long as a coupon cannot exceed the face value. If the face value is fixed, say $100, find the level of coupons for the duration to be 4. What durations can be manufactured in this way?

Reference no: EM131637988

Questions Cloud

Discuss case related to portfolio of bonds : Invest $1, 000 in a portfolio of bonds with duration 2 using 1-year zero coupon bonds with $100 face value and 4-year bonds with $15 annual coupons and $100.
Voluntary accreditation such as jcaho : Consider how voluntary accreditation can reduce liability issues in the health care organization.
Some students write on a dream job with a company : Some students write on a dream job with a company of your choice.
What is the completion and alternatives to using the tool : What is the completion and alternatives to using the tool?
What should be the face value of a bond : What should be the face value of a 5-year bond with 10% yield, paying $10 annual coupons to have duration 4? Find the range of durations that can be obtained.
Describe the impact of these issues on your department : Describe how improved communication, collaboration, and teamwork can improve conditions in your department
Service require the operations manager to focus extensively : For Service processes, Mass service and Professional service require the operations manager to focus extensively on:
Can the federal authorities pursue these charges : Can the federal authorities pursue these charges?
What role does satire have in the news today : How have programs and websites such as The Daily Show and The Onion provided a separate space for commentary on the news and news providers?

Reviews

Write a Review

Mathematics Questions & Answers

  Questions on ferris wheel

Prepare a Flexible Budget Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area.

  Logistic map

This assignment has two question related to maths. Questions are related to bifurcation cascade and logistic map.

  Finding the probability of cards

This assignment has questions related to probabiltiy.

  Systems of ode

Find all the xed points, and study their stability and Draw the phase portrait of the system, as well as the graphs of the solutions in all relevant cases.

  Derive the boolean expression

Derive the Boolean Expression and construct the switching circuit for the truth table stated

  System of equations

Evaluate which equations are under-identified, just-identified, and over-identified.

  Linear programming problem

Linear programming problem consisting of only two constraints with one objective function.

  Find the natural domain

Find the natural domain of the given functions.

  Introduction to numerical methods

Compute the coecients of the polynomials using the term recurrence relation.

  Chart of the topological manifold

De?nition of smoothness of functions on a smooth manifold is chart independent and hence geometric.

  Mathematics in computing

Questions related on mathematics in computing.

  Complex problems

Complex problems

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