In Section 24.3 we stated that in 2001 the duration of the 4 5/8s of 2006 was
Question:
In Section 24.3 we stated that in 2001 the duration of the 4 5/8s of 2006 was 4.36 years. Construct a table like Table 24.2 to show that this is so.
Transcribed Image Text:
Proportion of Total Value (PV(C,J/V) Proportion of Total Value x Time PV(C) at 4.9% Year 68.75 68.75 68.75 68.75 1068.75 65.54 62.48 59.56 56.78 841.39 0.060 0.058 0.055 0.052 0.060 0.115 0.165 0.209 3 0.775 1.000 3.875 Duration = 4.424 years V= 1085,74 %3D 123 45
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
The duration stated in Section 243 is 4574 years The table below ...View the full answer
Answered By
Ankit Mahajan
I am an electrical engineering graduate from Thapar institute of engineering and technology.
Qualified exams - GATE 2019,2020.
CAT EXAM 2021- 91.4 percentile
SSC EXAMS- 2019,2020,2021
AFCAT EXAM- 2019,2020,2021
I want to share my knowledge with other people so that they can achieve the same.
I have strong hold Mathematics, Electrical engineering and all the subjects related.
Just give me a problem and I will give you the solution of it.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
Students also viewed these Corporate Finance questions
-
Construct a table like Table 20-1 for eight molecules.
-
Construct a table like that shown in Figure C.25 to check for WAW stalls in the MIPS FP pipeline of Figure C.35. Do not consider FP divides. Figure C.25 Integer unit EX FP/integer multiply H0000 M2 |...
-
Construct a table like the one in this appendix on page 144 but assume that the rent ceiling is $2,000 rather than $1,500?
-
Required Use the Target Corporations annual report in Appendix B to answer the following questions. a. What was Targets current ratio for its fiscal-year ended February 1, 2014 (2013) and 2012? b....
-
Which of these does a transformer change: voltage, current, energy, power?
-
Explain the relationship between risk analysis, internal control, and material account balances in designing an approach to an integrated audit. In doing so, explain the differences between business...
-
The composite bar system in Figure 1.48 consists of a steel bar and a bronze bar that are both securely attached to a rigid block and rigid supports. The system is loaded with a total load P at the...
-
Some physical systems possessing capacitance continuously distributed over space can be modeled as an infinite array of discrete circuit elements. Examples are a microwave waveguide and the axon of a...
-
Examine the principles of non-Newtonian fluid dynamics, discussing the unique rheological properties of non-Newtonian fluids, the challenges in modeling their behavior, and the practical applications...
-
After running depth-first search on a directed graph G, is it necessarily true that v.f > u.f if vertex v is a descendent of vertex u? Explain your answer. (b) Is it true that if a directed graph G...
-
Many companies calculate the internal rate of return of the incremental after-tax cash flows from financial leases. What problems do you think this may give rise to? To what rate should the IRR be...
-
The formula for the duration of a perpetual bond which makes an equal payment each year in perpetuity is (1 + yield)/yield. If bonds yield 5 percent, which has the longer durationa perpetual bond or...
-
How many turns of wire would be required to make a 130-mH inductance out of a 30.0-cm-long air-filled coil with a diameter of 5.2 cm?
-
outlining your plan to win a client and RFP process. Make a compelling case for why your sales pitch will work. What communication tactics will make it a winner (i.e., in person or virtual, who on...
-
Question 25. Jelly bean pic purchased an item of plant on 1 January 20X0 for $500,000. Its estimated useful lite s years and it was expected to have nil residual value. On 31 December 20X2, the plant...
-
6. Apply the Extract Max() operation to the following max heap and draw the resulting binary tree. (Show your work.) 46 21 42 11 58 25 37 39 14 67 29 33 42 4 1 15 13
-
Controversy erupted in 1999 when the J.M. Smucker Company sued a Michigan bakery, Albie's, for infringing on its patent by marketing a crustless peanut butter and jelly sandwich crimped on the edges....
-
Learning Goals: Understand the concept of protection and how it relates to risk and risk management. Understand the role of insurance in protecting human, financial, and property assets. Understand...
-
After the engines of a \(100 \mathrm{~kg}\) spacecraft have been shut down, the spacecraft is found to be a distance \(10^{7} \mathrm{~m}\) from the center of the earth, moving with a speed of \(7000...
-
When the concentration of a strong acid is not substantially higher than 1.0 10-7 M, the ionization of water must be taken into account in the calculation of the solution's pH. (a) Derive an...
-
What is a spontaneous process? Provide an example.
-
Utility companies often face a decision to build new plants that burn coal, oil, or both. If the prices of both coal and gas are highly volatile, how valuable is the decision to build a plant that...
-
Star Mining buys a gold mine, but the cost of extraction is currently too high to make the mine profitable. In option terminology, what type of option(s) does the company have on this mine?
-
Star Mining buys a gold mine, but the cost of extraction is currently too high to make the mine profitable. In option terminology, what type of option(s) does the company have on this mine?
-
A firm has 36.30 million shares of common stock outstanding at a price of $32.81 per share. The firm also has 492000.00 bonds outstanding with a current price of $1,089.00. The outstanding bonds have...
-
Commwest Bank owns $300 million of variable-rate notes yielding BBR plus 4 per cent. These loans are financed by $300 million of fixed-rate bonds costing 5 per cent.Northside Building Societyhas $300...
-
Mr. Smith enters into the long position in 5 S&P 500 futures contracts. His brokerage account requires an initial margin balance equal to 15% of the notional amount and a maintenance margin equal to...
Study smarter with the SolutionInn App