What conclusions can you draw, Business Management

Assignment Help:

QUESTION

(i) Write short notes on

a. Callable Bonds

b. Yield to Maturity

c. Zero-Coupon Bonds

(ii) Consider a bond with a 12% coupon rate and paying interest semi-annually. The maturity date is March 1, 2013, and the settlement date is July 1, 2011. Assuming that the yield to maturity is 5%, calculate

a. The dirty price,

b. The accrued interest,

c. The clean price.

(iii) Suppose you hold a five-year bond with a par value of $100 and a coupon rate of 5%. Assume that the bond is paid annually and that interest rates are 3% (yield).

a. What is the duration of the bond?

b. What is the duration of the bond if instead the coupon rate was 1%?

c. What is the duration of the bond if instead the coupon rate was 3%?

d. How would your answers in parts (a), (b) and (c) change if you were holding a ten-year bond instead?

e. What conclusions can you draw?


Related Discussions:- What conclusions can you draw

Benefit to an organization by heath & safety, Heath & Safety in the Workpl...

Heath & Safety in the Workplace 1) There are 5 primary steps in assessing risk in the workplace wrt to H&S, identify 3 and discuss the what actions should be taken to manage or

How does organisational culture develop, Question 1: (a) How does organ...

Question 1: (a) How does organisational culture develop? (b) What are the functions of an organisational culture? (c) What are its drawbacks? Question 2: (a) What are t

How important is the concept of motivation, Question 1: Define Communic...

Question 1: Define Communication and account for the dominant role which it plays in the function of Organisations. Question 2: Describe Planning and give an account of

Improve business processes, Discuss why has direct marketing continued to g...

Discuss why has direct marketing continued to grow? Using Internet technology to improve business processes • Discuss how this technology can unlock new business opportunities •

Safety programme, Safety programme In very case of work  connected  inj...

Safety programme In very case of work  connected  injury there  must be some  degree of hazarded and unsafe or otherwise  faulty behaviour. Therefore  in every  plant small or

Leadership and organization, contrast the advantages and disadvantages on j...

contrast the advantages and disadvantages on just-in-learning

Intellectual laws, 5. What is your opinion of intellectual property rights?...

5. What is your opinion of intellectual property rights? Do you think people should have rights to intellectual property and, therefore, be protected by law? Why or why not? For

Explain the advantages and disadvantages of partnership, Q. Explain the adv...

Q. Explain the advantages and disadvantages of partnership? Advantages of Partnership Firm 1. Easy formation: A partnership firm can be formed without any compulsory lega

Discuss four strategies which can be adopted by businesses, QUESTION 1 ...

QUESTION 1 (a) Businesses are increasingly exposed to scrutiny and criticisms. Discuss four strategies which can be adopted by businesses to respond to these criticisms (b)

Write Your Message!

Captcha
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