subject
Business, 01.07.2019 21:40 jasmine8142002

Bond value and timelong dashchanging required returns personal finance problem lynn parsons is considering investing in either of two outstanding bonds. the bonds both have $1 comma 000 par values and 13% coupon interest rates and pay annual interest. bond a has exactly 5 years to maturity, and bond b has 15 years to maturity. a. calculate the present value of bond a if the required rate of return is: (1) 10%, (2) 13%, and (3) 16%. b. calculate the present value of bond b if the required rate of return is: (1) 10%, (2) 13%, and (3) 16%. c. from your findings in parts a and b, discuss the relationship between time to maturity and changing required returns. d. if lynn wanted to minimize interest rate risk, which bond should she purchase? why?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 21:00
The management of a private investment club has a fund of $250,000 earmarked for investment in stocks. to arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (x), medium risk (y), and low risk (z). management estimates that high risk stocks will have a rate of return of 15%/year; medium risk stocks, 10%/year; and low risk stocks, 6%/year. the amount of money invested in low risk stocks is to be twice the sum of the amount invested in stocks of the other two categories. if the investment goal is to have a rate of return of 9% on the total investment, determine how much the club should invest in each type of stock. (assume that all the money available for investment is invested.)
Answers: 3
question
Business, 22.06.2019 11:40
You are a manager at asda. you have been given the demand data for the past 10 weeks for swim rings for children. you decide to run multiple types of forecasting methods on the data to see which gives you the best forecast. if you were to use exponential smoothing with alpha =.8, what would be your forecast for week 22? (the forecast for week 21 was 1277.) week demand 12 1317 13 1307 14 1261 15 1258 16 1267 17 1256 18 1268 19 1277 20 1277 21 1297
Answers: 3
question
Business, 22.06.2019 22:40
When immigration adds to the size of the domestic labor pool, which of the following is likely to occur? a. wages decrease. b. productivity increases. c. consumption decreases. d. minimum wage increases.
Answers: 1
question
Business, 22.06.2019 23:30
Sally has a high-paying management position with a fortune 500 company, but she is tired of working for corporate america. so sally has decided to start a business, and she knows she will be successful as an entrepreneur because entrepreneurs typically
Answers: 3
You know the right answer?
Bond value and timelong dashchanging required returns personal finance problem lynn parsons is consi...
Questions
question
Mathematics, 13.10.2020 20:01
question
Mathematics, 13.10.2020 20:01
question
Social Studies, 13.10.2020 20:01
question
Mathematics, 13.10.2020 20:01