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

Question

1 Approved Answer

The price of a bond decreased by 1.84% (i.e.. AP/P = -1.84%) in response to an increase in the yield to maturity (YTM) from 6.8%

image text in transcribed
The price of a bond decreased by 1.84% (i.e.. AP/P = -1.84%) in response to an increase in the yield to maturity (YTM) from 6.8% to 7.2%. What is the bond's approximate Macaulay duration? Assume annual coupon payment. 3.47 years 3.80 years 4.91 years 4.76 years

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_2

Step: 3

blur-text-image_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

Financial Markets And Institutions

Financial Markets And Institutions

Authors: Frederic S. Mishkin, Stanley Eakins

6th Edition

0321374215, 9780321374219

More Books

Students also viewed these Finance questions

Question

★★★★★
Suppose that X is a separable metric space which satisfies the Bolzano-Weierstrass Property, that Y is a complete metric space, and that E is a bounded subset of X. Prove that a function f: E Y is...

Answered: 1 week ago

Question

★★★★★
An interval polynomial is of the form P(s) = a 0 + a 1 s + a 2 s 2 + a 3 s 3 + a 4 s 4 + a 5 s 5 + with its coefficients belonging to intervals x i a i y i , where xi, yi are prescribed...

Answered: 1 week ago

Question

★★★★★
How did James McKeen Cattell contribute to the scientific stature and visibility of psychology?

Answered: 1 week ago

Question

★★★★★
RLF Company sells office equipment and supplies to many organizations in the city and surrounding area on contract terms of 2/10, n/30. In the past, over 75% of the credit customers have taken...

Answered: 1 week ago

Question

★★★★★
s17-15 please show your work :0%, 0 of 10 E17-15 (similar to) Question Help Alpha Designs, Inc. has the following data: (Click the icon to view the data.) Perform a vertical analysis of Alpha...

Answered: 1 week ago

Question

★★★★★
Example 1. Find the limits of the following sequences or show that they do not exist (i.e., they diverge). 3n n/2 (a) lim n-+0o 3n +1 (b) If lim br Vn = 23, then lim by = n-+0o n-+00

Answered: 1 week ago

Question

★★★★★
Briefly explain the qualities of an able supervisor

Answered: 1 week ago

Question

★★★★★
Define policy making?

Answered: 1 week ago

Question

★★★★★
Define co-ordination?

Answered: 1 week ago

Question

★★★★★
What are the role of supervisors ?

Answered: 1 week ago

Question

★★★★★
Cheyenne Vision Inc. opened for business on Jan 1, and uses a perpetual inventory system. During January, the company had the following purchases and sales for one of its products: Purchases Sales...

Answered: 1 week ago

Question

★★★★★
What level of feedback from the data is required by the organisation? How will this impact the way you collect, organise and present the data?

Answered: 1 week ago

Question

★★★★★
A commonly used test of difference for parametric data is known as: a. Mann-Whitney test b. Chronbach alpha c. Factor analysis d t-test

Answered: 1 week ago

Question

★★★★★
Tests of probability that a test result occurred by chance is known as: a. Multiple regression analysis. b. Chi-square test. c. Significance testing. d. Chronbach alpha.

Answered: 1 week ago

Previous Question Next Question