Please show work as to how you got your answers. For calculator solutions, please give calculator...
Please show work as to how you got your answers. For calculator solutions, please give calculator inputs
A bond’s duration is 7.6 years and the yield is 3.1%, what is the modified duration of this bond? (2 points)
Homework Answers
Modified duration signifies the price sensitivity of the bond with the change in interest rate.
Modified duration is calculated from Macaulay duration using the following formula
Modified duration = Macaulay duration/(1+YTM/n) where, n = compounding frequency.
Assuming compounding frequency annually,
Modified duration = 7.6/(1+0.031) = 7.37 years
Add Answer to:
Please show work as to how you got your answers. For
calculator solutions, please give calculator...
Please show work as to how you got your answers. For calculator solutions, please give calculator...
Please show work as to how you got your answers. For calculator solutions, please give calculator inputs. You have the following details about the First Banc Corp. bond: Maturity = 9 years, Coupon rate (annual) = 5.25%, Yield to maturity = 4.2%, Par value = $1,000. Calculate the value of the bond, its duration and modified duration. What will be the change in value if interest rates go up by 1.0%?
Please show work as to how you got your answers. For calculator solutions, please give calculator...
Please show work as to how you got your answers. For calculator solutions, please give calculator inputs. A treasury bill currently sells for $9,891, has a face value of $10,000 and has 39 days to maturity. What is the bank discount rate on this security? What is the YTM or bond-equivalent yield?
Show Work Please 4. (35 points) A bond with a yield to maturity of 3% and...
Show Work Please
4. (35 points) A bond with a yield to maturity of 3% and a coupon rate of 3% has 3 years re- maining until maturity. Calculate the duration and the modified duration for this bond assuming annual interest payments and a par value of $1,000. Why is the duration of this bond higher than the 3-year 10% coupon bond yielding 10% we looked at in class that had a duration of 2.7 years? If the required market...
Please show the steps to finding the answer using a *Financial Calculator*! Thank you. Scan Solutions,...
Please show the steps to finding the answer using a
*Financial Calculator*! Thank you.
Scan Solutions, Inc. issued a 15 year maturity, 6% semi-annual coupon paying bond 7 years ago. You purchased the bond at par value at the time of issue. You intend to sell the bond now. Similar maturity, similar risk bonds currently yield 8.2% per year. a) What price do you expect to receive for the Scan Solutions bond if you sell it today? b) What is...
Can you please show your work and/or calculator steps? Problem 11-26 A 30-year maturity bond making...
Can you please show your work and/or calculator steps?
Problem 11-26 A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 10.59 years and convexity of 163.0. The bond currently sells at a yield to maturity of 9%. e-1. Find the price of the bond if it's yield to maturity rises to 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Price of the...
Please show all work. Provide steps and formulas to how you got your answer. This is...
Please show all work. Provide steps and formulas to how you got
your answer. This is so I can learn how to do these
problems.
Question 3 TTK Corp. preferred stock pays a $10 annual dividend per share. big, boob uliofasi (3.1) What is the price of a share of TTK preferred if similar-risk preferred yields 8%? O ver the (3.2) What is the price of comparable preferred yields 11%? vields 112
Please show how you got your answers! NAME ACCT 1320 - Take Home HW - Bonds...
Please show how you got your answers!
NAME ACCT 1320 - Take Home HW - Bonds - PRINT AND COMPLETE!!! On January 1, 2020, Sponsler Corporation issued $5,000,000,7%, 20-year bonds. The bonds were sold to yield an effective interest rate of 5%. Interest is paid semiannually on June 30 and December 31. The company uses the effective interest method of amortization. Use the table below to prepare a bond discount amortization schedule which shows the amortization of discount for the...
a. What is the difference between coupon rate and yield to maturity? How do you use...
a. What is the difference between coupon rate and yield to maturity? How do you use the coupon rate to calculate the periodic payment received from a bond? b. What is the price of a bond that is currently trading at a yield of 10% and has a face value of $1,000? This bond still has exactly 5 years to maturity. This bond pays semi-annual coupon at an annual rate of 8% (i.e., each coupon is 4%). Show how you...
Please show the steps to finding the answer using a *Financial Calculator*! Thank you. 1) The...
Please show the steps to finding the answer using a
*Financial Calculator*! Thank you.
1) The U.S. Treasury issued a 7-year maturity, $1000 par value bond exactly 3 years ago. The bond pays a nominal coupon rate of 12%. The coupon payments are paid semi-annually The most recent coupon payment (the sixth coupon payment) was made yesterday. Your required rate of return from the bond is 10% per year What is the price of the bond today? If the bond...
Please show work trying to compare your answers and how you got them to mine f....
Please show work trying to
compare your answers and how you got them to mine
f. Draw the cumulative percent frequency ogive. (5 pts) Twenty-five employees of ABC Corporation were asked if they liked or disliked the new strict manager. Below are their responses. Let L represent liked and D represent disliked. Is] L L D L L L D L L L D D L L L L L D L L L D L L L
Show Work Please
4. (35 points) A bond with a yield to maturity of 3% and a coupon rate of 3% has 3 years re- maining until maturity. Calculate the duration and the modified duration for this bond assuming annual interest payments and a par value of $1,000. Why is the duration of this bond higher than the 3-year 10% coupon bond yielding 10% we looked at in class that had a duration of 2.7 years? If the required market...
Please show the steps to finding the answer using a
*Financial Calculator*! Thank you.
Scan Solutions, Inc. issued a 15 year maturity, 6% semi-annual coupon paying bond 7 years ago. You purchased the bond at par value at the time of issue. You intend to sell the bond now. Similar maturity, similar risk bonds currently yield 8.2% per year. a) What price do you expect to receive for the Scan Solutions bond if you sell it today? b) What is...
Can you please show your work and/or calculator steps?
Problem 11-26 A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 10.59 years and convexity of 163.0. The bond currently sells at a yield to maturity of 9%. e-1. Find the price of the bond if it's yield to maturity rises to 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Price of the...
Please show all work. Provide steps and formulas to how you got
your answer. This is so I can learn how to do these
problems.
Question 3 TTK Corp. preferred stock pays a $10 annual dividend per share. big, boob uliofasi (3.1) What is the price of a share of TTK preferred if similar-risk preferred yields 8%? O ver the (3.2) What is the price of comparable preferred yields 11%? vields 112
Please show how you got your answers!
NAME ACCT 1320 - Take Home HW - Bonds - PRINT AND COMPLETE!!! On January 1, 2020, Sponsler Corporation issued $5,000,000,7%, 20-year bonds. The bonds were sold to yield an effective interest rate of 5%. Interest is paid semiannually on June 30 and December 31. The company uses the effective interest method of amortization. Use the table below to prepare a bond discount amortization schedule which shows the amortization of discount for the...
Please show the steps to finding the answer using a
*Financial Calculator*! Thank you.
1) The U.S. Treasury issued a 7-year maturity, $1000 par value bond exactly 3 years ago. The bond pays a nominal coupon rate of 12%. The coupon payments are paid semi-annually The most recent coupon payment (the sixth coupon payment) was made yesterday. Your required rate of return from the bond is 10% per year What is the price of the bond today? If the bond...
Please show work trying to
compare your answers and how you got them to mine
f. Draw the cumulative percent frequency ogive. (5 pts) Twenty-five employees of ABC Corporation were asked if they liked or disliked the new strict manager. Below are their responses. Let L represent liked and D represent disliked. Is] L L D L L L D L L L D D L L L L L D L L L D L L L
Most questions answered within 3 hours.
-
Assume that the population of Mexico is 128
million and that the population increases 1.01
percentannually....
asked 19 minutes ago -
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 25 minutes ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 1 hour ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 1 hour ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 1 hour ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 2 hours ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 2 hours ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 3 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 3 hours ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 3 hours ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 3 hours ago -
What's the streaming business's problem on the
horizon?
asked 4 hours ago