A bond that matures in 4 years has a face value of $1,000, an annual coupon of

Fantastic news! We've Found the answer you've been seeking!

Question:

A bond that matures in 4 years has a face value of $1,000, an annual coupon of $50, paid annually, and currently sells for $1,017.40. What is this bond's duration?

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

See More Books

Posted Date: Feb 29, 2024 11:38 PM

See More Questions

1. A bond that matures in fourteen years with a maturity value of $1,000 pays a coupon of 6.5% paid annually. The bonds YTM is 11.25%. What is the market price of the bond? 2. Mycors 15-year,...
Instructions: Enter all answers directly in this worksheet. When finished select Save As, and save this document using your last name and student ID as the file name. Upload the data sheet to...
Sbitany, is currently reviewing new geographical markets to sell its highly popular televisions. By 2 0 2 2 , 2 0 2 2 , it plans to open new stores across all the major Palestinian cities. Sbitany is...
4. (8 points) Fill in with =, >, >=,
1. Why do you think that people have experienced even more difficulties than usual in predicting the prices of shares of stock issued by individual companies? 2. Do you suppose that the degree of...
Radiant Energy Corporation Access the 2008 annual report for Radiant Energy Corporation for the year ended October 31, 2008, from SEDAR (www.sedar.com). Instructions (a) Review the Consolidated...
Consider the following cash flow profile, and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically...
Elton Company manufactures wheel rims. The controller budgeted the following ABC allocation rates for 2012: The number of parts is now a feasible allocation base because Elton recently purchased bar...
An 80 kg person stands in an elevator which is ascending towards the top of a building. A) As the elevator begins its ascent, it accelerates at the rate of 1 m/s2 . Draw the free body diagram showing...
Knock Knock is a business selling furniture, owned by KK Enterprise. It had the following trial balance as at 31 December 2017: Debit Credit RM RM Cash 13,700 Account receivables 19,800 Inventory (1...
1- WHAT DO YOU THINK OF THIS? I got two wrong; the first one was Borden's mascot, and it wasn't recognizable to me. Plus, I don't eat dairy very often. Second, the ICEE stumped me, and I didn't...
Describe the building-block concepts of costing systems. Explain Briefly
Make an Analysis of the Purchase Agreement Province of Ontario PURCHASE AGREEMENT This Purchase Agreement (this "Agreement") is entered into as of the 13th day of March 2023, (the "Effective Date")...
Snowy Corporation allows customers to pay with credit cards. The credit card company charges 2.5% of the total sale. If Snowy makes a sale for $40,000, how much revenue will be recorded? Show your...
Mrs. Cabafranca is an Attorney III in Legal Service Department of the Department of Trade and Industry (DTI). She earns a monthly salary P59,353.00.She is a member of GSIS, Pag-IBIG, and PhilHealth....
(:) 1 1 x2 4. Let A Find all x E R such that A is invertible. 1
Use the following data to answer the next two (2) questions: Product 1 Product 2 Product 3 Direct Material Cost $25,000 $30,000 $35,000 Direct Labor Cost $30,000 $40,000 $50,000 Direct Labor Hours...
What impact has adoption of Rule 144A had on debt-issuance patterns in the United States?
Look at the Opti-tech call option prices in Table. Call prices increase as the strike price decreases, holding the expiration month constant. The strike prices decrease in increments of $2.50. Do the...
Propulsion Sciences (PS) stock dividend has grown at 10 % per year for many years. Investors believe that a year from now the company will pay a dividend of $3 and that dividends will continue their...
What types of noise are we likely to encounter in a professional environment? Are they physical, psychological, or physiological?
What does it mean to say that communication is dynamic? How can two people in a conversation be both senders and receivers simultaneously?
What is metacommunication, and how do people metacommunicate with one another?

A bond that matures in 4 years has a face value of $1,000, an annual coupon of

Question:

Expert Answer:

The duration of a bond measures its sensitivity to changes in interest rates It is calcula... View the full answer

Introduction to Corporate Finance What Companies Do

Students also viewed these finance questions