You are given the following information: Name UK Govt bonds 5 %, maturing 20 Oct 2018...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are given the following information: Name UK Govt bonds 5 %, maturing 20 Oct 2018 Type: Annual coupons Settlement date: 20 Oct 2014 Denomination: £1000 Yield to 7% Maturity (a) Calculate the Macaulay Duration. (ъ) Find the PRICE VALUE OF A BASIS POINT (PVBP). (c) What will be the theoretical price if the yield to maturity falls by 35 basis points? (d) Calculate the actual price of the bond if yield to maturity effectively falls by 35 basis points. You are given the following information: Name UK Govt bonds 5 %, maturing 20 Oct 2018 Type: Annual coupons Settlement date: 20 Oct 2014 Denomination: £1000 Yield to 7% Maturity (a) Calculate the Macaulay Duration. (ъ) Find the PRICE VALUE OF A BASIS POINT (PVBP). (c) What will be the theoretical price if the yield to maturity falls by 35 basis points? (d) Calculate the actual price of the bond if yield to maturity effectively falls by 35 basis points.
Expert Answer:
Answer rating: 100% (QA)
Macaulay Duration Its a 1000 face value bond that pays a 5 coupon and matures in 4 years YTM is 7 pe... View the full answer
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date:
Students also viewed these finance questions
-
You are given the following information concerning four stocks: a) Using 20X0 as the base year, construct three aggregate measures of the market that simulate the Dow Jones Industrial Average, the...
-
You are given the following information concerning two stocks that make up an index. What is the price-weighted return for theindex? Price per Share Shares Outstanding 53,000 62,000 End of Year $81...
-
You are given the following information concerning a stock and the market: Calculate the average return and standard deviation for the market and the stock. Next, calculate the correlation between...
-
Use the Chain Rule to calculate the partial derivatives. Express the answer in terms of the independent variables. dh t -; h(x, y) = X x = tt, y = tt " y
-
Repeat Exercise 8 using the Gauss-Seidel method. Repeat exercise
-
What are the steps to enter to complete this in CAD? we are starting the center circle at 0,0 R5- R10- (Chapter 2-Drawing in AutoCAD] the following object in AutoCAD. Put your name on the drawing and...
-
Lincoln Corporation began the year with 50,000 shares of common stock outstanding. On May 1, an additional 18,000 shares of common stock were issued. On July 1, 20,000 shares of common stock were...
-
If Soule Company had net income of $585,000 in 2011 and it experienced a 30% increase in net income over 2010, what was its 2010 net income?
-
DEF Company purchases a vehicle on January 1, 2013 for $60,000 with an estimated residual value of $6,000 and useful life of 90,000 miles. Use the units-of-activity method. 1. Prepare the journal...
-
The number of auto accidents in Athens, Ohio, is related to the regional number of registered automobiles in thousands (X), alcoholic beverage sales in $10,000s (X), and rainfall in inches (X3)....
-
What are the fundamentals of labor legislation? Discuss in detail.
-
Based on Descriptive Analysis of below Data please confirm if corruption in a country have an impact on the Foreign Direct Investment of a country? Does ease of doing business have an impact on the...
-
The expression 6561gy 6561gy equals ka"y where r, the exponent of g, is: and s, the exponent of y, is: and k, the leading coefficient is:
-
The resistance of a resistor is quoted as R = R + SR. What does &R mean? R max R min Average value of R Uncertainty in R
-
Maria, who is now 55 yr old, is employed by a firm that guarantees her a pension of $35,000/year at age 65. What is the present value of her first year's pension if the inflation over the next 10 yr...
-
Find all the values of x such that sin ( 2 x ) = sin ( x ) and 0 less than equal to x less than equal to 2 pi ( enter your answers as a comma - separated list. )
-
Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so...
-
Find the velocity, acceleration, and speed of a particle with the given position function. r(t) = (t 2 , sin t - t cos t, cos t + t sin t), t > 0
-
The most recent financial statements for Moose Tours, Inc., follow. Sales for 2009 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout...
-
You are going to invest in a stock mutual fund with a 5 percent front-end load and a 1.30 percent expense ratio. You also can invest in a money market mutual fund with a 5.2 percent return and an...
-
What are the distinguishing features of a money market instrument?
-
At a price greater than the equilibrium price, a(n) _________, or excess quantity supplied, would exist. Sellers would be willing to sell _________ than demanders would be willing to buy. Frustrated...
-
If the price of zucchini increases, causing the demand for yellow squash to rise, what do we call the relationship between zucchini and yellow squash?
-
The price elasticity of demand is defined as the percentage change in _________ divided by the percentage change in _________.
Study smarter with the SolutionInn App