Macaulays duration is less than modified duration except for: a. Zero-coupon bonds. b. Premium bonds. c. Bonds
Question:
Macaulay’s duration is less than modified duration except for:
a. Zero-coupon bonds.
b. Premium bonds.
c. Bonds selling at par value.
d. None of the above.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
The answer is a Zerocoupon bonds Macaulays duration is a measure of the average time it takes a bond...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
ISE Essentials Of Investments
ISBN: 9781265450090
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
Question Posted:
Students also viewed these Business questions
-
Which hormon has teh anti-insulin effect? (A) Calcitonin (B) Cortisol (C) Oxytocin (D) Aldosterone.
-
How do you react substantively to the statement, "Hiring the right medical technologists is one of the most significant actions to ensure the success of a clinical laboratory along with productivity...
-
Paloma purchased a home with her husband, Neville, in January of 2021 for $700,000. In June of 2021, Paloma and Neville separated. On December 31, 2022, they were still legally married but did not...
-
Use the data from question 13 to produce a cumulative frequency graph and a cumulative relative frequency graph. Question 13 An advertising executive is interested in the age distribution of the...
-
Francum Company has the following data: direct labor $209,000, direct materials used $180,000, total manufacturing overhead $208,000, and beginning work in process $25,000. Compute (a) Total...
-
In Chicago, the size of a yen futures contract is 12.5 million yen. The initial margin is $2,025, and the maintenance margin is $1,500. You decide to buy 10 contracts, with maturity in June, at the...
-
In the preparation of a logical data flow diagram for a payroll processing application, which of the following symbols should be used to indicate the payroll data? (a) terminator symbol (b) data...
-
Discuss the concerns of suppliers (i.e., garment makers) and retailers in the apparel channel of distribution. Is it fair that retailers should expect suppliers to respond so quickly? Is it fair that...
-
Consider the following two transactions: (Transaction 1) Ginny, a U.S. tourist, exchanges $1000 in U.S. dollar bills for $1000 worth of Indian rupees. (Transaction 2) Tammy, a US housewife and a...
-
Is the decrease in a bonds price corresponding to an increase in its yield to maturity more or less than the price increase resulting from a decrease in yield of equal magnitude?
-
Show that the duration of a perpetuity increases as the interest rate decreases, in agreement with Rule 4.
-
What is stepwise regression, and when is it desirable to make use of this multiple regression technique?
-
There are three primary types of specifications - design, performance and proprietary - discussed in the text and Lecture Material. Talk detail about Design specifications - what it is, pro's and/or...
-
Download the following all to the same folder: The program Lab9-start.py Download Lab9-start.py The data files health-no-head-sample.csv Download health-no-head-sample.csvand health-no-head.csv...
-
As information technologies continue to evolve and become more interconnected, organizations and society face both opportunities and risks. Rainer and Prince (2020) consider the Internet of Things to...
-
2. Identify the information sources used for the data and documentation that they use in their work activities (such as verbal, written, electronic) (K2) 3. Describe why technical information is...
-
School psychologists play a critical role in evaluation and determination of eligibility for special education services. They often consult with teachers and families about characteristics of...
-
How does the dynamic interpretation of antitrust laws affect managers acquisition strategies? What impact does the involvement of individual states have on the acquisition decision?
-
Figure displays a 12.0 V battery 3 four uncharged capacitors of capacitances C1 = 4.00F, C2 = 6.00F, and C3 = 3.00F. The switch is thrown to the left side until capacitor 1 is fully charged. Then the...
-
Suppose investors believe that the standard deviation of the market-index portfolio has increased by 50%. What does the CAPM imply about the effect of this change on the required rate of return on...
-
Consider the statement: "If we can identify a portfolio that beats the S&P 500 Index portfolio, then we should reject the single-index CAPM." Do you agree or disagree? Explain.
-
Go to www.mhhe.com/bkm and link to Chapter 7 materials, where you will find a spreadsheet with monthly returns for GM, Ford, and Toyota, the S&P 500, and Treasury bills. a. Estimate the index model...
-
Questions 1 & 2 are financial reporting assessment opportunities ( AOs ) . Please provide a resolution to each AO and ensure that the resolution is well supported by appropriate standard references....
-
Costs should be considered in certain financial situations. To accurately measure the cost of a department, it is important not only to consider their direct costs such as materials, services, and...
-
A real estate investor is considering the purchase of a four - unit office building and has the following information. The purchase price is $ 9 5 1 , 6 8 2 with $ 9 , 2 8 1 in acquisition costs. The...
Study smarter with the SolutionInn App