A 10-year 15000 bond that pays 65 semiannual coupon interest to the investor's opportunity cost of investment

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

Question:

A 10-year 15000 bond that pays 65 semiannual coupon interest to the investor's opportunity cost of investment is 75 if the market interest rate changes by 15 percent.

What will be the duration of the bond?

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

See More Books

Posted Date: May 17, 2022 03:34 PM

See More Questions

A coupon bond paying semiannual interest is reported as having an ask price of 117% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is the...
A 6 percent bond issue has nine semiannual interest periods remaining in its term. Each $1,000 bond in the issue was sold to yield 10 percent. The bonds were sold at 79 between interest dates. What...
The duration of a 20-year, 8 percent coupon Treasury bond selling at par is 10.292 years. The bonds interest is paid semiannually, and the bond qualifies for delivery against the Treasury bond...
Suppose that the government of Malud increases both its own spending and autonomous taxes by $300 and the economys multiplier equals 2.5. If consumers spend 95% of their disposable (after-tax)...
A type of sampling application in which a relatively small initial sample is examined and decisions regarding expanding that sample are based on the results of this initial sample is known as a....
A farmer sells honey in jars at a market. He has 60 jars to sell. He calculates that the cost of producing each jar of honey is $1.50. He manages to sell 25 jars at $3.50 each. He then decides to...
Derive an expression for the minimum allowable distance between east-west rows of solar collectors that will assure no shading of one row by the row immediately to the south. Use the law of sines and...
As part of your financial planning, you wish to purchase a new car exactly 5 years from today. The car you wish to purchase costs $14,000 today, and your research indicates that its price will...
During 2024, LeBron Corporation accepts the following notes receivable. 1. On April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $5,600. 2. On...
The client's husband attacked her so severely that she was hospitalized. They are now separated, and the client wants to sue her husband. The husband still lives on the military base where they lived...
Find a non-constant solution to (x')^2+x^2=9 using your knowledge of derivatives from basic calculus.
Assume that all the graphs in the fol- lowing problems are simple, with no self-loops or multiple edges (in the same direction) between any two vertices. (a) Show that the total number of edges for a...
Impian Sdn Bhd manufactures products using three productions Cost Centres: Machining, Assembly and Finishing, and two Service Centres: Plant Maintenance (PM) and Administrative Support (AS). The...
What's wrong with the slide? Fill out the chart below Identify 3 things wrong with this slide, and how you would fix each.
you are required to demonstrate your skills and knowledge by working through a number of activities and completing and submitting a project portfolio. a suitable place to complete activities that...
Suppose instead the closed economy has an aggregate production function given by the following expression Y = 15K0.50 (ExL) 0.50 is experiencing an annual population and labour force growth rate of...
Ingram Dog Kennels had the following financial statistics for 2010: Long-term debt $400,000 (average rate of interest is 8%) Interest expense 35,000 Net income 48,000 Income tax 46,000 Operating...
Global.asax is used for: a. declare application variables O b. all other answers are wrong O c. declare global variables O d. handle application events
An insurance companys projected loss ratio is 64.8 percent and its loss adjustment expense ratio is 25.6 percent. The company estimates that commission payments and dividends to policyholders will be...
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. If the bank earns $ 120,000 in noninterest income, incurs $ 80,000 in noninterest...
Use the information in the following stock quote to calculate McKessons earnings per share over the last year. (2) (3) (4) (5 6 7) (89 (10)1) (12) 13) (14) (15) 52 week 52 week Div Yield PE %C Close...
A failure report states that a safety transmitter signaled a high pressure in a vessel and initiated a trip. Other pressure measurements did not indicate any high pressure. A diagnostic in the safety...
Each of the 50 transmitters in identical service had a test time of 7,640 hours. During this period, no failures occurred. Describe the procedure for calculating the failure rate.
A software bug causes a logic solver to fail unpredictably and randomly. Will this failure be considered a random failure or a systematic failure? Why?

A 10-year 15000 bond that pays 65 semiannual coupon interest to the investor's opportunity cost of investment

Question:

Expert Answer:

The duration of the bond would be 10 years WORKINGS 10year 15000 bond ... View the full answer

Financial Markets and Institutions

Students also viewed these accounting questions