Explain the notion of duration of a bond. Under what conditions is this measure reasonably accurate?
Question:
Explain the notion of duration of a bond. Under what conditions is this measure reasonably accurate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
The duration of a bond measures its sensitivity to changes in the level of ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Engineering questions
-
Under what conditions is a bond almost certain to be called at a particular date in the future? How does this condition affect its price?
-
Under what conditions is purchased goodwill amortized? Explain how a company determines its goodwill impairment, if any.
-
What does the hedge ratio measure? Under what conditions is this ratio valuable in determining the number of futures contracts necessary to hedge fully an investment in another currency?
-
Depreciation policy is an important decision made by a company's Finance Director. A company has purchased some equipment for 85,000, with an estimated scrap value of 9,000 at the end of its useful...
-
A one-dimensional infinite well of length 200 pm contains an electron in its third excited state. We position an electron-detector probe of width 2.00 pm so that it is centered on a point of maximum...
-
Two instructors announced that they "grade on the curve," that is, give a fixed percentage of each of the various letter grades to each of their classes. Their curves are as follows: If a random...
-
The simplified financial statements of SPS Ltd appear below. Additional information 1. Dividends declared and paid were \($26\) 400. 2. During the year equipment was sold for \($10\) 200 cash. The...
-
Happy Camper Park was organized on April 1, 2016, by Erica Hatt. Erica is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Erica prepared the following...
-
A spherical snowball is melting in such a way that its radius is decreasing at a rate of 0.1 cm/min. At what rate is the volume of the snowball decreasing when the radius is 8 cm. (Note the answer is...
-
Explain the principles involved in duration-based hedging. How does the computation of the hedge ratio here differ from that of the minimum-variance hedge computation?
-
Describe the conversion factor that applies if the delivered bond in a Treasury bond futures contract is different from the standard bond.
-
A counter flow double pipe heat exchanger has an outer pipe of 4-nom sch 40 commercial steel and an inner tube of 2-std type M copper. Hard water at an average temperature of 120F flows in the tube...
-
Intel has restructured and eliminated about 10,500 jobs during the past 20 months. The company decided to make these cuts owing to declining revenue and market share. Intel used a quantitative...
-
In late 2006. Irdeto Holdings BV Chief Executive Graham Kill concluded his company could no longer be run from an Amsterdam suburb. Sales at Irdeto, a unit of South American media group Naspers Ltd....
-
Indra Nooyi is an entirely different kind of CEO, a product of her native India as well as of PepsiCos family values approach to grooming CEOs. She is not hung up on pay. Shes not shy about asking...
-
For Linda Skoglund, getting a pedicure on a busy Tuesday afternoon was a career turning point. It ran against her Midwestern work ethic. And certainly, there was plenty of work piled up at J.A....
-
Results from an American Management Association national survey: The Electronic Monitoring & Surveillance Survey revealed that 25% of employers have fired employees who misused e-mail (e.g.,...
-
For what types of firms is target costing most appropriate and why?
-
Ball bearings are widely used in industrial applications. You work for an industrial food machinery manufacturer and your role is to design the driveshaft assembly on a new type of equipment that...
-
A man makes an investment every 3 months at a nominal annual interest rate of 28%, compounded quarterly. His first investment was $100, followed by investments increasing $20 each 3 months. Thus, the...
-
A 25-year old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to accumulate $1 million in the account by the time she retires from work in 40 years. The bank manager...
-
What single amount on April 1, 1998, is equivalent to a series of equal, semiannual cash flows of $1000 that starts with a cash flow on January 1, 1996, and ends with a cash flow on January 1, 2005?...
-
Choctaw Company completed the following transactions in Year 1, the first year of operation: 1. Issued 34,000 shares of $10 par common stock for $10 per share. 2. Issued 4,400 shares of $20 stated...
-
Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments. Project X1 Project X2 Initial investment $...
-
Explain Jonathan Edwards "new Light theology"
Study smarter with the SolutionInn App