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.
-
You plan to save $5,700 per year for the next 10 years. After
the last deposit,...
asked 23 minutes ago -
On January 1, 2019, ABC Corp. borrowed $81,000 by signing an
installment loan. The loan will be...
asked 27 minutes ago -
Enzyme X exhibits maximum activity at pH = 5.25. X shows a sharp
decrease in its...
asked 42 minutes ago -
Postulate a reason for why so many aliphatic amino acids are
essential.
asked 41 minutes ago -
Three samples were taken of 4 different dog food bags and their
weights were recorded:
Sample/Observation...
asked 44 minutes ago -
The Beatles had 27 number one hits; a radio station asks
listeners to send in a...
asked 42 minutes ago -
Help with Java Program Please
Create a simple graph class. The graph class should have the...
asked 43 minutes ago -
Which of the following statements is true regarding the nature
of culture?
A.We are born with...
asked 1 hour ago -
(a) 2
NO2(g) à 2
NO(g) +
O2(g)
The rate law for this reaction
is 2nd...
asked 1 hour ago -
Write the overall reaction for the RedOx
reaction (below) when it occurs in an acidic environment....
asked 1 hour ago -
Two forces are acting on an object. Force 1 on the object is 6.0
N and...
asked 1 hour ago -
You are planning for retirement. You plan to work for 20 years.
Starting a year from...
asked 1 hour ago