Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

22) Assume that a 5-year bond pays interest of $145 once a year (1 payment / year) and will mature for $1,000. Also assume that

22) Assume that a 5-year bond pays interest of $145 once a year (1 payment / year) and will mature for $1,000. Also assume that the yield to maturity on this bond is currently 12 percent. Given this information, determine the duration of this bond.

Enter your answer in decimal format, truncated to 2 decimal places. For example, if your answer is 7.1186 years, enter "7.11".

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Money Book Of Personal Finance

Authors: Richard Eisenberg

1st Edition

0446524298, 9780446524292

More Books

Students also viewed these Finance questions

Question

★★★★★

Alicia, a 17 year old student, purchased a car using her own money as a down payment and signed an installment contract for the remaining $7000. Her father co-signed on the contract with her. Alicia,...

Answered: 1 week ago

Question

★★★★★

using MATLAB 16) Write a script that will print the following multiplication table: 1 2 3 4 5 4 6 8 10 9 12 15 16 20 25

Answered: 1 week ago

Question

★★★★★

5. 30. Project evaluation [LO 14.3, 14.4] This is a comprehensive project evaluation problem bringing together much of what you have learned in this and previous chapters. Suppose you have been hired...

Answered: 1 week ago

Question

★★★★★

Financial ratio analysis is conducted by four groups of analysts: managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in...

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Question

★★★★★

Consider the extended state machine model of Figure 3.8, the garage counter. Suppose that the garage has two distinct entrance and exit points. Construct a side-byside concurrent composition of two...

Answered: 1 week ago

Question

★★★★★

On January 2, 2019, Lapar Corporation purchased a machine for $50,000. Lapar paid shipping expenses of $500, as well as installation costs of $1,200. The company estimated that the machine would have...

Answered: 1 week ago

Question

★★★★★

It consists of establishing objectives for a specific period of time that will lead you to your long-term professional goal. ( ( A . . Race, B . . Professional Development, C . . Career plan, D . ....

Answered: 1 week ago

Question

★★★★★

If an individual agrees to participate in a research study because he or she believes that harm or punishment will result for refusing to participate in the study, the individual's decision to...

Answered: 1 week ago

Question

★★★★★

Ethics Some operating systems can be run directly from an optical disc or flash drive. Booting a computer this way circumvents the OS installed on the hard drive of the system. In a school or...

Answered: 1 week ago

Question

★★★★★

On June 1, 2025, Pharoah Service Co. was started with an initial investment in the company of $21,450 cash. Here are the assets. liabilities, and common stock of the company at June 30, 2025, and the...

Answered: 1 week ago

Previous Question Next Question