Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

Assume a 20-year zero has a yield of 4.8% and a par value of $1000. Using modified duration, what is the new bonds approximate price

Assume a 20-year zero has a yield of 4.8% and a par value of $1000. Using modified duration, what is the new bonds approximate price if interest rates fall by 0.5%?

$354

$429

$317

$466

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

Misunderstanding Financial Crises Why We Donot See Them Coming

Authors: Gary B. Gorton

1st Edition

019992290X, 0199986886, 9780199922901, 9780199986880

More Books

Students also viewed these Finance questions

Question

★★★★★

What is consumer socialization? How is knowledge of it useful to marketing managers?

Answered: 1 week ago

Question

★★★★★

Sunshine Cleaners currently uses a machine that was purchased 2 years ago for $8,000. This machine is being depricated using straight-line, and it has 4 years of remaining depreciable life and 6...

Answered: 1 week ago

Question

★★★★★

=+3. In 2014, the U.S. House of Representatives approved a new farm bill establishing the Margin Protection Program (MPP) for dairy producers. The MPP supports dairy farmers when the margin between...

Answered: 1 week ago

Question

★★★★★

On January 31, 2012, the Accounts Receivable balance of Advanced Automotive Technology is $270,000. The Allowance for Uncollectible Accounts has a $4,100 credit balance. Advanced Automotive...

Answered: 1 week ago

Question

★★★★★

Assume a 20-year zero has a yield of 4.8% and a par value of $1000. Using modified duration, what is the new bonds approximate price if interest rates fall by 0.5%? A. $354 B. $429 C. $317 D. $466

Answered: 1 week ago

Question

★★★★★

1 The Cobb-Douglas production function Suppose that the world is described by the Solow model, and that the production function is: where = 1 F(K, L) AK L 0 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

Suppose that P(A) = 0.6, P(B) = 0.7, and that events A and B are independent a. Find P(AB) b. Find P(AUB) c. Are the two events A and B mutually exclusive? Give reason.

Answered: 1 week ago

Question

★★★★★

Please provide solutions HC3181 2839 32. Total fixed costs allocated to the department are $25,000. Total number of units expected to be sold based on a market study are 12,000. Total variable costs...

Answered: 1 week ago

Question

★★★★★

From the Factory to the Frontlines The Operation Warp Speed Strategy for Distributing a COVID-19 Vaccine What This Strategy Aims to Do This report to Congress details a strategy to achieve the...

Answered: 1 week ago

Question

★★★★★

What Ever Happened to Lana? Once the rumor mill in the business department at Youngstown Community College got wind that the dean, Evan Comstock, wanted to move David into the faculty position...

Answered: 1 week ago

Question

★★★★★

Blossom Company provides this information for the month ended October 31, 2025: sales on credit $305,800, cash sales $154,700, sales discounts $5,400, and sales returns and allowances $23,510....

Answered: 1 week ago

Previous Question Next Question