Question: What is the duration of a bond with four years
What is the duration of a bond with four years to maturity and a coupon of 8 percent paid annually if the bond sells at par?
Answer to relevant QuestionsBlue Steel Community Bank has the following market value balance sheet:a. What is the duration of the assets? b. What is the duration of the liabilities? c. Is the bank immune to interest rate risk?The forward price (F) of a contract on an asset with neither carrying costs nor convenience yield is the current spot price of the asset (S0) multiplied by 1, plus the appropriate interest rate between the initiation of the ...The Litzenberger Company has projected the following quarterly sales amounts for the coming year: a. Accounts receivable at the beginning of the year are $310. Litzenberger has a 45-day collection period. Calculate cash ...Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:Sales for the first quarter of the year after this one are projected at $120 million. Accounts receivable at the beginning of the year ...You place an order for 500 units of inventory at a unit price of $135. The supplier offers terms of 1/10, net 30. a. How long do you have to pay before the account is overdue? If you take the full period, how much should you ...
Post your question