Question

Asked Nov 13, 2019

27 views

What is the current price and Macaulay's duration of a $1,000, 8% coupon bond that pays interest semi-annually if the bond matures in ten years and has a yield-to-maturity of 9.65%?

Step 1

**Calculation of current price and Macaulay’s duration:**

The bond price is** $895.64, **and Macaulay’s duration is **6.88.**

**Note:** The date of settlement and date of ma...

Tagged in

Q: Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is ...

A: As per the question, except the initial cost, all the other costs will continue for longer periods. ...

Q: Ultra Petroleum (UPL) has earnings per share of $1.67 and a P/E ratio of 33.16. What’s the stock p...

A: P/E or price earnings multiple is one of the valuation techniques used. It is the price per share of...

Q: Babbalu Inc. just paid a dividend of $1 per share. Babbalu expects to increase its annual dividend b...

A: Given that the dividend just paid is $1.The dividend growth is expected to be 20% per year for next ...

Q: Lee Remick read the following partial advertisement: price, $22,500; down payment, $1000 cash or tra...

A: Price = $22,500Down Payment = $1,000Loan Amount (pv) = $22,500 - $1,000 = $21,500Monthly Installment...

Q: Critically evaluate the importance of the standard deviation factor in comparing investments.

A: Standard deviation helps the investor to measure the volatility of the market. It helps an investor ...

Q: Breakeven cash inflow refers to ________. the minimum level of cash inflow necessary for a pro...

A: Net present value is one of the discounted techniques of capital budgeting which is used to measure ...

Q: Need help to figure this problem and put into excel format with formulas.

A: Hi, there is no information regarding the cash inflows for each year for each machine is mentioned, ...

Q: An investor owns $5,000 of Adobe Systems stock, $2,000 of Dow Chemical, and $9,000 of Office Depot. ...

A: Hence, the total weight of portfolio is $16,000 is obtained by adding the investment made by the inv...

Q: Please include calculations. XYZ company has the following expected cash flows for three scenarios t...

A: Hey, since there are multiple questions posted, we will answer first three question. If you want any...