FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An 12% coupon rate bond is maturing in 1 year has a yield (YTM) of 6%. Assuming a face value of $1000, the price of

An 12% coupon rate bond is maturing in 1 year has a yield (YTM) of 6%. Assuming a face value of $1000, the price of the bond is $1057.40. Given this information calculate the Macaulay Duration (IN YEARS) is: O A. 0.92 O B. 0.97 O C. 1.00 O D. 1.94
image text in transcribed
An 12% coupon rate bond is maturing in 1 year has a yield (YTM) of 6%. Assuming a face value of $1000, the price of the bond is $1057.40. Given this information calculate the Macaulay Duration (IN YEARS) is: A. 0.92 B. 0.97 C. 1.00 D. 1.94

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Financial Intelligence An Entrepreneurs Guide Volume 1

Financial Intelligence An Entrepreneurs Guide Volume 1

Authors: Income Mastery

1st Edition

1647772648, 978-1647772642

More Books

Students also viewed these Finance questions

Question

★★★★★
Synthesis Systems Co. offers its services to residents in the Dillon City area. Selected accounts from the ledger of Synthesis Systems Co. for the current fiscal year ended October 31, 2006, are as...

Answered: 1 week ago

Question

★★★★★
Ayer Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Ayer aggregates all operating costs of $...

Answered: 1 week ago

Question

★★★★★
Developmental psychologist Howard Gardners multiple intelligences theory continues to have an impact on classrooms in the United States today, based on its reflection of which current classroom...

Answered: 1 week ago

Question

★★★★★
In recent years, the financial press reported story after story regarding downsizing and layoff s in the U.S. auto industry. Often the stories discussed multiple rounds of downsizing events (such as...

Answered: 1 week ago

Question

★★★★★
Please answer all the 4 questions. Thank you. NEED-TO-KNOW COMPREHENSIVE 1 Weighted-Average Method Pennsylvania Company produces a product that passes through two processes: grinding and mixing....

Answered: 1 week ago

Question

★★★★★
Work-hours per day: 8 hours In company XYZ they sell 750.000 units of a specific product in a year. People from the procurement department earn $380 a month (30 days average in a month). Every time...

Answered: 1 week ago

Question

★★★★★
Coffee-cup Corporation received an invoice on May 2, 2012, stating the discount terms as 2/10, n/30. The company settled the invoice amount by paying $1,470 on May 10, 2012. What is the amount of...

Answered: 1 week ago

Question

★★★★★
1.Mr. John Foret is 42 years old and divorced from his wife. His Net Income For Tax Purposes consists of rental income. He has retained the family home and both of the children of the marriage live...

Answered: 1 week ago

Question

★★★★★
A parachute company sells safety devices that are designed to fire, releasing the reserve parachute, at a mean height of 335.2 m with a standard deviation of 12.1 m. The company recently updated the...

Answered: 1 week ago

Question

★★★★★
1. Although Apples inbound logistics began with Apple controlling the assembly of its computers, it shifted to having suppliers acquire raw materials with contract manufacturers handling most of the...

Answered: 1 week ago

Question

★★★★★
Compose two (2) pieces of academic writing on the following questions. Responses should be 800 words each and have a short introduction, body, and a short conclusion. Research Task 1 What are the...

Answered: 1 week ago

Question

★★★★★
Flexibility. Organizations are introducing new working patterns and abandoning some traditional ones, influenced by economic transformation and savings in labour costs; however, part-time working has...

Answered: 1 week ago

Question

★★★★★
Recruitment and redundancy. Skills shortages as a result of loss of employees and lower wages in the state- and former state-owned organizations has led to targeting of school leavers, the long-term...

Answered: 1 week ago

Question

★★★★★
Underestimation of the complexities of a free market, with a tendency to rely on imported solutions. Western managers, they recommend, should encourage a blend of HRM involving both free market...

Answered: 1 week ago

Previous Question Next Question