DURATION PROBLEMS
CALCULATE THE DURATION FOR THE FOLLOWING:
1. A 25-YEAR BOND, 2 YEARS TO MATURITY, PAYING A 11.45% COUPON, AND YTM OF 12.5%
A. INTEREST PAYABLE ANNUALLY
B. INTEREST PAYABLE SEMI-ANNUALLY
C. INTEREST PAYABLE QUARTERLY
2. A BOND WITH CURRENT YIELD=10.75% ON ISSUE DATE, MATURING IN 5 YEARS, IRR=8.57%
A. INTEREST PAYABLE ANNUALLY
B. INTEREST PAYABLE SEMI-ANNUALLY
3. A BOND ISSUED ON APRIL 1, 1970 WITH 4 YEARS TO MATURITY, PAYING $127.50 ANNUALLY, AND A REQUIRED RATE OF RETURN OF 9.23%
A. INTEREST PAYABLE ANNUALLY
B. INTEREST PAYABLE SEMI-ANNUALLY
4. A BOND ISSUED ON JANUARY 1, 1980, MATURING JANUARY 1, 1995, WITH THE CURRENT APPROPRIATE INTEREST RATE OF 9.4%, PAYING 10.55% COUPON, AND IT IS NOW JANUARY 1, 1993
A. INTEREST PAYABLE ANNUALLY
B. INTEREST PAYABLE SEMI-ANNUALLY
5. AN ANNUAL BOND WITH A CURRENT PRICE OF $1,170.5854, PAYING COUPON OF 14.5%, MATURING IN 5 YEARS
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more