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erastova [34]
2 years ago
12

A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has (Macauley) duration of 11.54 years and conve

xity of 192.4. The bond currently sells at a yield to maturity of 8%. a) Find the price of the bond if ytm falls to 7% (use financial calculator or spreadsheet).
Business
1 answer:
dsp732 years ago
7 0

The price of the bond if the yield to maturity falls to 7%, based on the period and amount will be $1,620.45.

<h3>What is the price of the bond at 7%?</h3>

We shall assume that the bond has a face value of $1,000.

The coupon is:

= 12% x 1,000

= $120

The price is:
= (Coupon x Present value interest factor of annuity, 30 years, 7%) + Face value of bond / ( 1 + rate) ^ number of periods

= (120 x 12.409) + (1,000 / (1 + 7%)³⁰)

= $1,620.45

Find out more on bond pricing at brainly.com/question/25596583.

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What Generation expected immigrants to assimilate and become "American" to the extent of expecting to alter their names upon arr
Anna [14]
Probably millennials
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MARKING BRAINLIEST
Grace [21]
B and E is the answer
7 0
3 years ago
In a within-groups design, each participant experiences all levels of the –. There are two types of this design. The first is th
kati45 [8]

In a within-groups design, there are two types of this design which are:

  • The repeated-measures design
  • The concurrent-measures design

<h3>What is  within-groups design?</h3>

A within-groups design is known to be a kind of an experimental design that is one where each participant is said to often experiences the total levels of the independent variable.

Note that there are two types of this design which is the repeated-measures design whose role is to measure or one  where participants are said to be opened to a lot of levels of the independent variable and they are known to be tested on the dependent variable after every exposure.

The second is said to be the concurrent-measures design and this is one where participants are said to communicate with the different levels of the independent variable in a simultaneous way..

Hence, In a within-groups design, there are two types of this design which are:

  • The repeated-measures design
  • The concurrent-measures design

Learn more about concurrent-measures design  from

brainly.com/question/25662476

#SPJ1

8 0
2 years ago
A not-for-profit voluntary health and welfare organization should report a contribution for the construction of a new building a
Brilliant_brown [7]

Answer:

The correct answer is letter "C": financing activities.

Explanation:

Cash flow refers to transferring cash to, or from, an account, a company, or an investment. In the cash flow statement, there is a section called "<em>Financing Activities</em>" where all the net flow of cash to fund the entity is recorded. Those activities imply the <em>firm's equity, debt, </em>and <em>dividends</em>.

7 0
3 years ago
You have a $50,000 portfolio consisting of Intel, GE, and Con Edison. You put $20,000 in Intel, $12,000 in GE, and the rest in C
Marrrta [24]

Answer: 1.048

Explanation:

First let us calculate the amount in Con Edison

= 50,000 - 20,000 - 12,000

= $18,000

To calculate the Portfolio Beta, you take the sum of the respective betas of the various stocks in the portfolio multiplied by their proportion in the portfolio.

Intel = 20,000/50,000

= 2/5

GE = 12,000/50,000

= 6/25

Con Edison = 18,000/50,000

= 9/25

Adding them up we will have

= (1.3*2/5) + (1*6/25) + (0.8*9/25)

= 1.048

If you need any clarification do react or comment.

3 0
3 years ago
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