subject
Business, 27.11.2019 21:31 buglerboy979

A30-year maturity bond making annual coupon payments with a coupon rate of 12% has duration of 11.54 years and convexity of 192.4. the bond currently sells at a yield to maturity of 8%. a. use a financial calculator or spreadsheet to find the price of the bond if its yield to maturity falls to 7%. b. what price would be predicted by the duration rule? c. what price would be predicted by the duration-with-convexity rule? d. what is the percent error for each rule? what do you conclude about the accuracy of the two rules? e. repeat your analysis if the bond’s yield to maturity increases to 9%. are your conclusions about the accuracy of the two rules consistent with parts (a)–(d)?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 07:30, cacaface311
Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)
Answers: 1
image
Business, 22.06.2019 10:20, alayciaruffin076
What two things do you consider when evaluating the time value of money
Answers: 1
image
Business, 22.06.2019 13:30, Hcalhoun21
How does hipaa address employee’s access to e-phi?
Answers: 1
image
Business, 22.06.2019 14:50, demarcuswiseman
Prepare beneish corporation's income statement and statement of stockholders' equity for year-end december 31, and its balance sheet as of december 31. there were no stock issuances or repurchases during the year. (do not use negative signs with your answers unless otherwise noted.)
Answers: 2
You know the right answer?
A30-year maturity bond making annual coupon payments with a coupon rate of 12% has duration of 11.54...

Questions in other subjects:

Konu
Mathematics, 26.02.2020 09:24
Konu
Social Studies, 26.02.2020 09:39