6) Please explain what is meant by the duration and convexity of a bond. How do...
6) Please explain what is meant by the duration and convexity of a bond. How do we go about deriving the duration and convexity of the bond? Why is it so important that we are able to calculate these properties for determining the interest rate risk of my securities? Explain other applications of calculus that was used in the program
Homework Answers
Duration measures risk in the bond- Its shows how much price of bond will change if there is 1 bps of change in interest rate.
Bond price and interest rate and inversely propotional to each other. Duration captures only linear changes in interest rate and bond prices but convexity captures non linear changes also. convexity is also a measure of risk in bond.
It is derived for taylor series formulae of calculus
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6) Please explain what is meant by the duration and convexity of
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Could you explain in detail how to calculate the after-tax income of North Carlina Bond, special...
Could you explain in detail how to
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*** PLease answer all questions to ur best ability. Thank you! if you do ill give good rating. the language is python....
*** PLease answer all questions to ur best ability. Thank you!
if you do ill give good rating. the language is python.
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Please explain how this answer is achieved. However, please explain using a scientific calculator only. -...
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i have troubles answering this! please help! its for this wed march 4 i'm a first...
i have troubles answering this! please help! its for
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some help.
sorry i meant to add finance! i just need the tables
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please help
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Could you explain in detail how to
calculate the after-tax income of North Carlina Bond, special the
part I was underline? why used 100000*4.5%*5%*0.35?
Tammy, a resident of Virginia, is considering whether to purchase a $100,000 North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. Tammy is aware that State of Virginia bonds of comparable risk are yielding 4.5%. Virginia bonds are exempt from Virginia...
*** PLease answer all questions to ur best ability. Thank you!
if you do ill give good rating. the language is python.
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answer discussion quesyions and case study questions
DISCUSSION QUESTIONS 1. Discuss what is meant by the term “power." 2. Explain the difference between potential and kinetic power 3. Describe the different sources of power. 4. Explain what is meant by a manager's power base and the way ers develop it. 5. Describe organizational politics and the resulting political behavi 6. Discuss what is meant by upward influence and the various influ tactics categories associated with it. od the ways manag....
Please explain how this answer is achieved. However,
please explain using a scientific calculator only. - no
appendix tables or excel can be used.
11.31 (a) fair value + nil initial direct costs = PV minimum lease payments + any unguaranteed residual Initial payment on 1 July 2019 payment $50 000 PV of remaining lease rental $50 000 paid at the beginning of each 128 855 year (meaning that the final payment is in three years and not four years...
i have troubles answering this! please help! its for
this wed march 4
i'm a first year student and our porfessor gave us
this excersice. But he never explained how i will fill up those
tables you see on the page. its due on March 4th. i really need
some help.
sorry i meant to add finance! i just need the tables
to be answered. My professor didnt explain how to get these types
of information or how to do...
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