Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

Please show work 189. A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of

Please show work image text in transcribed

189. A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation EMOD is the estimated price of this bond at an interest rate of 7.0% using the first-order modified approximation Calculate EC EMOD A.91 B. 102 C. 116 D. 127 E. 143

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

Governing The Modern Corporation Capital Markets Corporate Control And Economic Performance

Governing The Modern Corporation Capital Markets Corporate Control And Economic Performance

Authors: Roy C. Smith, Ingo Walter

1st Edition

0195171675,0199924015

More Books

Students also viewed these Finance questions

Question

★★★★★

Two thin parallel slits are made in an opaque sheet of film. When a monochromatic beam of ligbt is shone through them at normal incidence, the first bright fringes in the transmitted light occur in...

Answered: 1 week ago

Question

★★★★★

Suppose that two call options on a stock with strike prices $80 and $85 cost $7 and $4, respectively. They have the same expiration date. A bull spread involves buying a call on a stock with a lower...

Answered: 1 week ago

Question

★★★★★

210. Employees at a department store are observed engaging in the following behavior: (a) They hide items that are on sale from the customers, and (b) they exert little effort in designing...

Answered: 1 week ago

Question

★★★★★

Burke Corporation was organized on January 1, 2014. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2...

Answered: 1 week ago

Question

★★★★★

Bunkhouse Electronics is a recently incorporated firm that makes electronic entertainment systems. Its earnings and dividends have been growing at a rate of 34.0%, and the current dividend yield is...

Answered: 1 week ago

Question

★★★★★

You are considering a long-term agricultural project that will require an investment of $45,000 per year for 4 years (beginning year 1) and will generate positive cash flows for 20 years beginning...

Answered: 1 week ago

Question

★★★★★

Question : In Java, what is the main purpose of using the "template method pattern"? A ) To encapsulate the creation of objects in a centralized location. B ) To define the skeleton of an algorithm...

Answered: 1 week ago

Question

★★★★★

Question: What is the primary benefit of utilizing the "singleton pattern" in Java? A ) It allows multiple instances of a class to be created safely across different threads. B ) It restricts a class...

Answered: 1 week ago

Question

★★★★★

Question: What is the main purpose of the "factory method pattern" in Java? A ) To create a family of related or dependent objects without specifying their concrete classes. B ) To define an...

Answered: 1 week ago

Question

★★★★★

Question: What is the primary function of the "strategy pattern" in Java? A ) To represent a one-to-many dependency between objects, helping to notify dependents of state changes. B ) To encapsulate...

Answered: 1 week ago

Question

★★★★★

What is electric dipole explain with example

Answered: 1 week ago

Previous Question Next Question