subject
Business, 31.10.2019 07:31 dessy6546

An 6% annual coupon bond with (face value = 9,000) currently trades at par. its macaulay duration is 3.77 years and its convexity is 69.42. suppose yield goes from 2.04% to 5.86% one day. calculate the approximate dollar change in price using both duration and convexity. assume annual compounding. round your answer to 2 decimal places.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:50
Hanna intends to give her granddaughter, melodee, her antique hat pin. this heirloom has been kept under lock and key in the wall vault in the library of hanna's house in virginia. the hat pin is currently the only item in the vault. when hanna is visiting melodee in connecticut, hanna gives melodee the only key to the vault. melodee is grateful for the present and excitedly accepts. in this situation has there been a completed gift?
Answers: 3
question
Business, 22.06.2019 08:40
Calculate the cost of each capital component—in other words, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). use both the capm method and the dividend growth approach to find the cost of equity.calculate the cost of new stock using the dividend growth approach.what is the cost of new common stock based on the capm? (hint: find the difference between re and rs as determined by the dividend growth approach and then add that difference to the capm value for rs.)assuming that gao will not issue new equity and will continue to use the same target capital structure, what is the company’s wacc? e. suppose gao is evaluating three projects with the following characteristics.each project has a cost of $1 million. they will all be financed using the target mix of long-term debt, preferred stock, and common equity. the cost of the common equity for each project should be based on the beta estimated for the project. all equity will come from reinvested earnings.equity invested in project a would have a beta of 0.5 and an expected return of 9.0%.equity invested in project b would have a beta of 1.0 and an expected return of 10.0%.equity invested in project c would have a beta of 2.0 and an expected return of 11.0%.analyze the company’s situation, and explain why each project should be accepted or rejected g
Answers: 1
question
Business, 22.06.2019 11:30
1.     regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool. student c   incorrect
Answers: 2
question
Business, 22.06.2019 17:00
You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.
Answers: 2
You know the right answer?
An 6% annual coupon bond with (face value = 9,000) currently trades at par. its macaulay duration is...
Questions
question
Mathematics, 18.09.2020 06:01
question
Spanish, 18.09.2020 06:01
question
History, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
English, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
English, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
Chemistry, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
English, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
English, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
question
Mathematics, 18.09.2020 06:01
Questions on the website: 13722367