Question: i got 9 years A four-year $1,000 bond will pay $70 in interest at the end of each year. With a yield-to-maturity of 8%, its

i got 9 years

A four-year $1,000 bond will pay $70 in interest at the end of each year. With a yield-to-maturity of 8%, its present market price is $934. Its duration is A. Show the Formula of duration (0.1 point) B. Create the Table (0.6 point) C. Show the steps to get the market price (0.2 point) D. Show the steps to get the duration (0.2 point)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Consider an aperiodic signal x(n) with Fourier transform X(?). Show that the Fourier series coefficients C?v of the periodic signal are given by >* (n - IN) V(n) = i=-a -(#) 2 A = 0. 1... N 1

Finance HW Help: 29. A bond will pay $80 in interest at the end of each of the next three years, plus $1,000 at the end of the third year. If it has a present market price of $950, its yield-to-...

show formulas and work please... if using excel include formulas!!! no financial calculator plugins! 29. (0.3 point) A bond will pay $80 in interest at the end of each of the next three years, plus...

show work and formula A four-year $1,000 bond will pay $70 in interest at the end of each year. With a yield-to-maturity of 8%. Its duration is A. Show the Formula of duration (0.1 point) B. Create...

A bond will pay $70 of interest at the end of each of the next three years, plus $1,000 at the end of year three. If the present market price is $1,040, its yield-to-maturity is: (a) 5.5%. (b) 4.9%....

1. A one-year Treasury bill has a yield of 6%. A bond will pay $70 at the end of year 1 and $1,070 at the end of year 2. If its market value is $1,036.50, the two-year spot rate is: (a) 6%. (b) 9%....

13.Contingent immunization (a) uses the immunization amount as a benchmark to see if the manager can continue to actively manager. (b) allows the manager to actively manage at all time. (c) combines...

7. The spot rate for year 1 is 7.5% and the forward rate for year one to two is 8%. The two-year discount factor is: (a) 0.845. (b) 0.861. (c) 0.852. (d) 0.888. (e) 0.874 .24 A bond will pay $50 in...

19. A four-year $1,000 bond will pay $60 in interest at the end of each year. With a yield-to-maturity of 8%, its present market price is $934. Its duration is (a) 1.88 years. (b) 3.66 years. (c)...

19. (0.5 point) A four-year $1,000 bond will pay $60 in interest at the end of each year. With a yield-to-maturity of 8%, its present market price is $934. Its duration is (a) 1.88 years. (b) 3.66...

37 questions regarding finance. All the questions are multiple choice. Please review the attachment and let me know if you have any questions. Thank you for your work on this. QUESTION 1 1. In the...

As and air freight forwarder, you have many duties and responsibilities to your client. List and discuss ten primary duties you have towards your clients. Discuss the functions of IATA rules...

? Printech Company print elaborated, high-quality color brochures in its facility, located in Faisalabad, Pakistan. It primarily served businesses in the Urban Sindh, although it did have some...

15. Assign a numerical value to the strength of the following argument: The Wilson family has four children. Therefore, at least two of the children were born on the same day of the week.

Match each item on the left with the most appropriate item on the right. 1. Context 2. Cost savings and improved investor relations. 3. Extensible 4. IFRS taxonomy 5. Instance document 6. Namespace...

Explain why planning is important in the success of any organization--private or public, profit or non-profit, big or small.

What is the value of strategic and operational planning planning

The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero 1. What long position in the stock is...

Calculate the hydroxide ion concentration for a solution with [H_3O^{+}]_{eq} = 2.810^{-5} M.

Hospital administrators must schedule nurses so that the hospital's patients are provided adequate care. At the same time, careful attention must be paid to keeping costs down. From historical...

Kristopher Martinez notes that it is important to listen to employees. How can an organization effectively do this?

Youve just been hired by Rim Auto Parts as the manager of its largest store in a major city. Part of your responsibility is to continue to foster an organizational culture that focuses on a healthy...

You recently started working in a large retail store as a management trainee. You are asked to develop a series of actions to improve employee engagement. What might you consider and why?