In Section 24.3 we stated that in 2001 the duration of the 4 5/8s of 2006 was
Question:
In Section 24.3 we stated that in 2001 the duration of the 4 5/8s of 2006 was 4.36 years. Construct a table like Table 24.2 to show that this is so.
Transcribed Image Text:
Proportion of Total Value (PV(C,J/V) Proportion of Total Value x Time PV(C) at 4.9% Year 68.75 68.75 68.75 68.75 1068.75 65.54 62.48 59.56 56.78 841.39 0.060 0.058 0.055 0.052 0.060 0.115 0.165 0.209 3 0.775 1.000 3.875 Duration = 4.424 years V= 1085,74 %3D 123 45
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
The duration stated in Section 243 is 4574 years The table below ...View the full answer
Answered By
Ankit Mahajan
I am an electrical engineering graduate from Thapar institute of engineering and technology.
Qualified exams - GATE 2019,2020.
CAT EXAM 2021- 91.4 percentile
SSC EXAMS- 2019,2020,2021
AFCAT EXAM- 2019,2020,2021
I want to share my knowledge with other people so that they can achieve the same.
I have strong hold Mathematics, Electrical engineering and all the subjects related.
Just give me a problem and I will give you the solution of it.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
Students also viewed these Corporate Finance questions
-
Construct a table like Table 20-1 for eight molecules.
-
Construct a table like that shown in Figure C.25 to check for WAW stalls in the MIPS FP pipeline of Figure C.35. Do not consider FP divides. Figure C.25 Integer unit EX FP/integer multiply H0000 M2 |...
-
Construct a table like the one in this appendix on page 144 but assume that the rent ceiling is $2,000 rather than $1,500?
-
Required Use the Target Corporations annual report in Appendix B to answer the following questions. a. What was Targets current ratio for its fiscal-year ended February 1, 2014 (2013) and 2012? b....
-
Which of these does a transformer change: voltage, current, energy, power?
-
A motorist claims that the South Boro Police issue an average of 60 speeding tickets per day. These data show the number of speeding tickets issued each day for a period of one month. Assume is...
-
On January 1, 2020, Landry Inc. issued a three-year, \(\$ 5,000\), zero-interest-bearing note to Dillon LLP, and received \(\$ 4,198\). The implied interest rate is \(6 \%\) on this note transaction....
-
Plantwide department and ABC indirect cost rates. Automotive Products (AP) designs and produces automotive parts. In 2009, actual variable manufacturing overhead is $308,600. APs simple costing...
-
Hello, I need help with the following. Required: 1. Compute the revenue and gross profit will Sanderson report in its 2021, 2022, and 2023 income statements related to this contract assuming...
-
According to a survey of American households, the probability that the residents own 2 cars if annual household income is over $50,000 is 80%. Of the households surveyed, 60% had incomes over $50,000...
-
Many companies calculate the internal rate of return of the incremental after-tax cash flows from financial leases. What problems do you think this may give rise to? To what rate should the IRR be...
-
The formula for the duration of a perpetual bond which makes an equal payment each year in perpetuity is (1 + yield)/yield. If bonds yield 5 percent, which has the longer durationa perpetual bond or...
-
Consider three businesses, all of which offer price reductions to their customers. The first is an independently owned gas station located at a busy intersection in Cincinnati, Ohio, that offers a 3...
-
All of the following are parts of corporate governance except: a. Oversight of management by the board of directors. b. Established processes to provide accountability back to stockholders. c....
-
All of the following require an audit communication to a third-party except: a. A review of financial statements of a nonpublic company. b. An attestation to the quality of a company's internal...
-
Which of the following statements is correct? As a result of the Sarbanes-Oxley Act of 2002, a. Public companies must report on the quality of their internal controls. b. CPA firms cannot provide...
-
What is "evidence"?
-
Which of the following would not represent one of the primary problems that would lead to the demand for independent audits of a company's financial state- ments? a. Management bias in preparing...
-
Donald is resident and domiciled in the UK. He is not a Scottish taxpayer. He has the following income in tax year 2023-24: Donald claims only the personal allowance. Compute the amount of income tax...
-
When the concentration of a strong acid is not substantially higher than 1.0 10-7 M, the ionization of water must be taken into account in the calculation of the solution's pH. (a) Derive an...
-
What is a spontaneous process? Provide an example.
-
Utility companies often face a decision to build new plants that burn coal, oil, or both. If the prices of both coal and gas are highly volatile, how valuable is the decision to build a plant that...
-
Star Mining buys a gold mine, but the cost of extraction is currently too high to make the mine profitable. In option terminology, what type of option(s) does the company have on this mine?
-
Star Mining buys a gold mine, but the cost of extraction is currently too high to make the mine profitable. In option terminology, what type of option(s) does the company have on this mine?
-
Department F had 4,000 units in work in process that were 40% completed at the beginning of the period at a cost of $14,100. During the period, direct materials were added at a cost of $26,500, and...
-
During an IT audit, the auditor finds that loan customers are unable to log in to their online profiles to correct information in an application. Which privacy principle is most affected? Disclosure...
-
Select all that apply On 2/1, Sophie Company sold merchandise on account to Lexie Company in the amount of $1,500. Lexie Company paid the amount due on 2/28. The journal entry that Sophie Company...
Study smarter with the SolutionInn App