Question 2, 4 & 6

Best Available Writers

 

Question 2, 4 & 6

(2) The current price of a bond having annual coupons is $1,312. The deriva- tive of the price function of the bond with respect to the yield to maturity is $7,443.81 when evaluated at the current annual yield, which is 7%. Calcu late the Macaulay duration D(07, oo) and the modified duration D(.07, 1) of the bond. A zero-coupon bond matures in eight years. It is sold to yield 5% annual! Find the modified duration D(.05, 1) Section 9.6 Problems, Chapter 9 429 (4) The current price of a noncallable bond with annual coupons is $1,120.58, ases to 4.4%. About what and the current annual yield is 4.25%. The modified duration D(0425.2) is 3.58. Es would the price be if the discount rate decreases to an annual effective rate of 37%? timate the price of the bond if the yield incre (5) Calculate the Macaulay duration D(.05, oo) and the modified duration D(05,2) of a preferred stock that pays dividends forever of $50 each six months, with the next dividend in exactly six months. (6) Calculate the Macaulay duration D(06, 00) and the modified duration D(06, 1) of a stock that pays annual dividends forever, assuming that the first dividend, payable in exactly one year, is $100 and then, each subsequent di dend is 2% more than the previous one to nay annual level

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

(2) The current price of a bond having annual coupons is $1,312. The deriva- tive of the price function of the bond with respect to the yield to maturity is $7,443.81 when evaluated at the current annual yield, which is 7%. Calcu late the Macaulay duration D(07, oo) and the modified duration D(.07, 1) of the bond. A zero-coupon bond matures in eight years. It is sold to yield 5% annual! Find the modified duration D(.05, 1) Section 9.6 Problems, Chapter 9 429 (4) The current price of a noncallable bond with annual coupons is $1,120.58, ases to 4.4%. About what and the current annual yield is 4.25%. The modified duration D(0425.2) is 3.58. Es would the price be if the discount rate decreases to an annual effective rate of 37%? timate the price of the bond if the yield incre (5) Calculate the Macaulay duration D(.05, oo) and the modified duration D(05,2) of a preferred stock that pays dividends forever of $50 each six months, with the next dividend in exactly six months. (6) Calculate the Macaulay duration D(06, 00) and the modified duration D(06, 1) of a stock that pays annual dividends forever, assuming that the first dividend, payable in exactly one year, is $100 and then, each subsequent di dend is 2% more than the previous one to nay annual level

 

Best Available Writers